Lokpobiri Claims Oil Sector Suffered 10-Year Investment Drought Before Tinubu’s Reforms

The Minister of Petroleum Resources (Oil), Senator Heineken Lokpobiri, has made a striking claim regarding the state of Nigeria’s oil industry, asserting that the sector had gone for over a decade without attracting any substantial new investments prior to the current administration.

Lokpobiri disclosed this during his keynote address at the United States–Nigeria Council’s session on oil sector collaboration, which took place on the sidelines of the United Nations General Assembly (UNGA) in New York. The Minister stated that this long-term investment drought was responsible for stunted growth and a severe decline in investor confidence in what is the nation’s primary source of foreign exchange earnings.

He, however, provided an optimistic update, attributing a “significant progress” over the past two years to the “bold reforms” championed by President Bola Tinubu’s government. According to Lokpobiri, the Petroleum Industry Act (PIA) has been fully operationalised to provide a globally competitive and attractive investment atmosphere.

“Recall that for over ten years, prior to the coming of President Bola Ahmed Tinubu, Nigeria did not have any new investment in the oil sector,” Lokpobiri said. He quickly added that the recent reforms have already ushered in new investments running into billions and that all formerly inactive blocks are now available and “up for grabs.”

In addition to renewed investment interest, the Minister cited a noticeable improvement in production, stating that crude oil output had risen to approximately 1.745 million barrels per day (mbpd). He seized the opportunity to call on U.S. and global investors to partner with Nigeria, emphasising the government’s commitment to energy transition goals while leveraging fossil fuels to finance its national energy mix.