By The federal government has called on major oil companies operating in Nigeria to increase their investments in the sector, citing ongoing efforts to improve regulatory stability and business competitiveness.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made the appeal during a Cross Industry Group (CIG) meeting in Florence, Italy. He emphasized that President Bola Tinubu’s administration has provided all necessary incentives to facilitate smooth and profitable operations.
“The government has done its part by implementing investment-friendly policies, including the President’s Executive Order on deepwater incentives. Now, the ball is in the court of the IOCs and other operators to make strategic investment decisions,” Lokpobiri stated.
He warned that the federal government would enforce the “drill or drop” provision under the Petroleum Industry Act (PIA) to ensure that oil firms either develop their assets or relinquish them. He also urged IOCs to support local refining efforts, as Nigeria looks to expand its domestic refining capacity.
Recent legislative reforms, such as the PIA 2021, and streamlined project execution orders have helped attract major deals, including Shell’s $5 billion Bonga North project. The government is now aiming to secure additional Final Investment Decisions (FIDs) in 2025.
With a focus on deepwater and gas-based industries, Nigeria hopes to ramp up oil production, strengthen energy security, and maintain its position as a top investment destination in the global oil and gas market.
