$50b investment coming in oil sector – Lokpobiri

Nigeria is on track to attract $50 billion in investments into its oil sector by the close of 2024, according to Senator Heineken Lokpobiri, Minister of State for Petroleum (Oil).

Speaking in Abuja, the minister highlighted a renewed confidence among local and foreign investors due to ongoing reforms and a clear policy direction under President Bola Tinubu’s administration.

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Lokpobiri revealed that the government aims to increase oil production to 2.7 million barrels per day, bolstered by the reopening of previously locked oil wells and improvements in security across the Niger Delta.

He said: “The ongoing reform in the oil sector is attracting investors; we have addressed their concerns; and we have regained their confidence. We are expecting about $50 billion worth of investment to come in before the end of the year, and once more investors come in, our oil production will increase.

‘’There are so many oil wells that were drilled and locked up; and part of my mandate is to open up those wells to boost our oil production. “

While saluting the people of the Niger-Delta for maintaining peace in the region, the minister said the peaceful environment had also encouraged improvement of oil production.

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The minister also explained that the federal government had made substantial gains in the war against oil thief in the Niger Delta.

According to him, ‘’The marching order given by the President to the Armed Forces, in collaboration with my ministry, the Police, Nigerian National Petroleum Company (NNPC) Limited and other security agencies, to declare a fresh war on perpetrators of oil theft – to improve oil production and revitalise the nation’s ailing economy, is yielding good results.’’

He explained that President Tinubu is leading in the process of developing oil sector and attracting investors to the country, stating that the success of the upstream sector is very important to the success of mainstream/downstream sector.

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The minister stated that Nigeria relies so much on crude oil production, and appealed to the media to be part of the journey to develop the sector. ‘’The President means well for Nigerians; we can trust him to do things differently’’, he said.

On the ongoing total deregulation in oil sector, he said the country will be better for it.

According to him, ‘’The current situation is no longer sustainable. Even if the federal government is willing to continue with it, we don’t have the money to do it. The NNPCL cannot be importing fuel and be selling at half price.

‘’The government needs fund to develop infrastructure and better the lives of Nigerians. The money for the subsidy will be deploy to other things like public infrastructure, education, health care and jobs creation.’’

Lokpobiri explained further that total deregulation of oil sector was also expected to allow for more private-sector operators in the sector, saying that when the products are available, the price would find its level.