Oil and Gas to the Rescue

Oil and Gas remain the quickest means of economic recovery for the country


The need to invest in the Oil and Gas sector of the Nigerian economy cannot be overemphasised. The Minister of State for Petroleum Resources (Oil), Mr. Heineken Lokpobiri made these remarks during an interview with journalists on the side-lines of the just concluded 2024 Offshore Technology Conference (OTC) in Houston, Texas, United States of America. According to the Minister, the most expeditious route to economic recovery for Nigeria lies in investment in the oil and gas sector.

The minister underscored that Nigeria’s substantial oil and gas reserves would hold little significance if left untapped and unexplored. He reassured investors that oil would retain its relevance for the foreseeable future and emphasized the Federal Government’s commitment to creating an enabling environment to attract optimal investment. Highlighting strategic initiatives undertaken by the government under President Bola Tinubu’s administration, Lokpobiri refuted claims that oil could become obsolete. He encouraged investors to seize the opportunity presented by the oil bid round to make significant investments.

“Lately, global discussions have reaffirmed the enduring relevance of fossil fuels. The sooner we extract our oil, the more advantageous it is for our country,” Lokpobiri asserted. “We are here at OTC to showcase Nigeria’s distinctive approach and our government’s commitment to creating the most conducive regulatory framework, fostering competitiveness, and eliminating investment barriers,” he added. “Today, we are instilling confidence in the sector, assuring investors that Nigeria is open for business.” Lokpobiri also announced the abolition of signature bonus payments to the government by new investors in the oil and gas sector. He explained that this lump sum payment upon the granting of a petroleum exploration license had been a significant impediment to investors over the years.

“To facilitate a smoother transition for investors, such payments will now be linked to immediate exploration and production activities,” Lokpobiri stated. “Rather than channelling these funds to the federal government, investors must demonstrate their financial capability to engage in exploration.” He emphasized that this new approach would drive job creation and stimulate activity in the upstream oil sector.