Paragraph 1: Setting the Stage for Increased Oil Production
The Nigerian government has issued a directive to the Nigerian National Petroleum Company Ltd. (NNPCL) to significantly increase oil production by the end of the year. This directive, delivered by the Minister of State for Petroleum Resources, Mr. Heineken Lokpobiri, at the Africa Energy Forum in Houston, Texas, underscores the nation’s focus on boosting its oil output. The forum, themed "Africa’s Energy Investment Drive Amid Global Transition to Green Minerals and Clean Energy," served as a backdrop for this important announcement, highlighting the complex interplay between traditional energy sources and the growing emphasis on renewable energy. The Minister emphasized the urgency of this production increase, setting an ambitious target for the NNPCL to achieve in the coming months.
Paragraph 2: Ambitious Targets and Justification
Initially, President Bola Tinubu tasked the NNPCL with raising production to two million barrels per day (bpd). However, Minister Lokpobiri subsequently raised the bar to 2.5 million bpd. He expressed confidence in the NNPCL’s ability to meet this revised target, drawing on past performance during the COVID-19 pandemic when Nigeria achieved similar production levels despite limited investment in the sector. This historical precedent, according to the Minister, demonstrates the potential for increased output even in challenging circumstances. The Minister attributed this optimism to the government’s ongoing efforts to address the key obstacles that have historically hampered oil production in Nigeria.
Paragraph 3: Addressing Bottlenecks and Implementing Reforms
Minister Lokpobiri highlighted the decade-long stagnation in investment within the oil and gas sector, a situation he attributed to various challenges, including pipeline vandalism and oil theft. He credited President Tinubu’s recent reforms with reversing this trend and creating a more attractive environment for investment. These reforms, coupled with intensified efforts to combat pipeline vandalism and oil theft, are already yielding positive results, evident in the recent increase in production from one million bpd to 1.8 million bpd since the Minister assumed office. This improvement signifies the effectiveness of the government’s strategies and further reinforces the feasibility of the 2.5 million bpd target.
Paragraph 4: Policy Implementation and International Cooperation
A key component of the government’s strategy involves the full implementation of the "Drill or Drop" policy under the Petroleum Industry Act (PIA). This policy encourages continuous exploration and development by mandating new drilling activities to replenish reserves whenever oil is extracted. This ensures a sustainable approach to oil production and long-term security of supply. Addressing the issue of international funding for fossil fuel projects, the Minister acknowledged the World Bank’s withdrawal from financing such ventures. However, he clarified that the NNPCL has not relied on World Bank funding and instead collaborates with international oil companies (IOCs) to secure financing through alternative avenues, demonstrating a proactive approach to securing necessary capital.
Paragraph 5: Challenging Western Narratives and Promoting Investment
Minister Lokpobiri also challenged Western narratives advocating for a complete halt to fossil fuel production, characterizing them as geopolitical rather than purely environmental. He pointed out the inherent contradiction in these narratives, highlighting the continued reliance on fossil fuels in the production of green technologies like electric cars and lithium batteries. He emphasized that the COP agreements focus on emissions reduction, not the elimination of fossil fuels altogether. The Minister extended an invitation to the global investment community to explore opportunities in Nigeria’s energy sector, emphasizing the country’s robust regulatory framework and globally competitive fiscal regime, positioning Nigeria as a prime destination for energy investment.
Paragraph 6: The Africa Energy Forum and its Significance
The Africa Energy Forum 2025 provided a platform for in-depth discussions on Africa’s energy landscape, funding opportunities, and the challenges facing the sector. Mrs. Jumoke Oyedun, Managing Director of ACME Multech Services Nigeria, highlighted the forum’s focus on exploring both existing and emerging energy sources, addressing sector-specific challenges, and examining the role of African oil companies. She emphasized the importance of smart investments in both hydrocarbons and green minerals to drive sustainable development and ensure that African communities benefit from their mineral wealth. The forum attracted delegations from various African nations, demonstrating the continent’s collective interest in navigating the global energy transition and maximizing its resource potential.
