The Minister of State for Petroleum Sources (Oil), Senator Heineken Lokpobiri, has launched a strategic plan to handle challenges and leverage alternatives inside Nigeria’s petroleum business.
A press release on Saturday by the Particular Assistant on Media and Communication to the Minister, Nneamaka Okafor, revealed that Lokpobiri introduced the plan on the Cross Trade Group assembly in Istanbul, Turkey, whereas addressing a gathering of Nigeria’s main oil producers.
The assertion famous that Lokpobiri highlighted the oil sector’s crucial position in Nigeria’s economic system, noting that it contributes roughly 85% of presidency income and serves as a key supply of international alternate. He emphasised the necessity for Nigeria’s oil and gasoline sector to stay resilient, aggressive, and worthwhile.
The minister outlined a twin strategy for the business’s future, specializing in maximising crude oil manufacturing whereas supporting a transition to cleaner power.
“Within the brief time period, our focus stays on growing income from crude oil manufacturing,” Lokpobiri said, affirming the Federal Authorities’s dedication to addressing operational bottlenecks and upgrading infrastructure.
Recognising the urgency of price discount, he highlighted FG’s measures aimed toward streamlining operations, notably upstream actions, to stay aggressive in a fluctuating world market.
“A big a part of the federal government’s imaginative and prescient includes balancing power calls for with environmental concerns. The world is transferring towards cleaner power, and Nigeria should be a part of that transition. The federal government has prioritised pure gasoline as a cleaner various whereas actively exploring renewable power choices to diversify Nigeria’s power combine”, he clearly said.
The minister additionally urged business gamers to embrace funding in cleaner, extra sustainable strategies, stressing that Nigeria’s transition will stay pragmatic and targeted on native priorities.
Acknowledging the persistent safety challenges within the Niger Delta, the minister reported ongoing efforts to guard Nigeria’s oil infrastructure by means of enhanced safety measures.
He stated, “We’re participating communities and inspiring partnerships that foster native possession of crucial property. Efforts embrace elevated navy assist, notably from the Nigerian Navy and Joint Process Drive (JTF), mixed with neighborhood engagement and financial empowerment initiatives to fight pipeline vandalism and oil theft.
“The federal government has additionally carried out technology-driven options, together with drone and satellite tv for pc surveillance, to boost the safety framework and detect potential threats to the business.”
He additionally famous that the excellent bundle of reforms and incentives to revitalise Nigeria’s oil and gasoline sector goals to draw higher funding and stimulate financial progress.
“Key parts embrace the VAT Modification Order 2024 and the Tax Incentives Order for deep offshore oil and gasoline manufacturing, providing fiscal advantages to firms concerned within the sector. As well as, directives deal with lowering contracting prices and timelines, mandating that the procurement cycle be streamlined to 6 months, enhancing effectivity for traders.
“By incentivising each non-associated gasoline and deep-water developments, Tinubu’s administration seeks to bolster Nigeria’s competitiveness as an power funding hub in Africa. This forward-looking framework is designed to harness the nation’s assets whereas diversifying income streams, guaranteeing a balanced strategy that helps progress and sustainability in Nigeria’s oil and gasoline business”, Lokpobiri said.
Moreover, the minister highlighted the federal government’s steadfast dedication to the Nigerian Oil and Gasoline Trade Content material Growth Act. Whereas selling native content material is crucial, he acknowledged the necessity for a balanced strategy to keep away from creating limitations to international funding.
He assured stakeholders that discussions are underway to align NOGICD Act amendments with the twin objectives of fostering native progress and sustaining investor confidence.
He additional referred to as for higher dedication from business gamers to assist Nigeria’s formidable plan to extend oil manufacturing by over a million barrels throughout the subsequent 24 months.
“We can not afford to carry helpful fields in perpetuity. It’s both you place them to work or relinquish them. The period of renewing licenses with out improvement is over”, he said.
Lokpobiri’s handle served as a clarion name to business stakeholders to collaborate in securing Nigeria’s power future, emphasising that “Nigeria’s petroleum assets maintain immense worth and potential. Realizing this potential requires addressing our challenges and leveraging our strengths to make sure shared prosperity and power safety.”