The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, Ph.D., has stressed the importance of putting Nigeria’s ongoing petroleum sector reforms in proper perspective, highlighting increased crude oil production, renewed investments and the fiscal impact of subsidy removal under the Renewed Hope administration of President Bola Ahmed Tinubu.
In a statement issued by his Special Adviser on Media and Communications, Nneamaka Okafor, the Minister said it was important to demonstrate where the petroleum sector was before May 2023 and where it is today, noting that crude oil production had risen from about one million barrels per day to approximately 1.8 million barrels per day, representing an increase of about 80 per cent. The Ministry has also reported a rise in active drilling rigs from fewer than 10 to more than 60.
Lokpobiri attributed the progress to reforms aimed at restoring investor confidence, improving regulatory certainty and accelerating project delivery.
According to the Minister, previously stalled divestment transactions involving International Oil Companies (IOCs) were enabled under the Tinubu administration, allowing IOCs to deepen investments in deepwater operations while new asset owners continued investments across the petroleum value chain.
On subsidy removal, Lokpobiri said the policy eliminated a significant financial burden on the country. “Subsidy removal was the removal of a burden we were carrying on behalf of neighbouring countries who were benefiting from the corruption in it,” he said.
He explained that the previous regime placed substantial financial pressure on the Nigerian National Petroleum Company Limited, affecting its ability to meet obligations and fund critical investments.
The Minister also pointed to renewed activity by major operators and ongoing efforts to modernise Nigeria’s ageing pipeline infrastructure.
He maintained that downstream deregulation had created an environment for investments such as the Dangote Refinery to thrive, while subsidy removal freed significant resources for the Federation.