The Nigerian Government has issued a stern warning to oil companies sitting on dormant oil fields, declaring that it will no longer tolerate underperformance in Nigeria’s petroleum sector.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made this known on Monday at the opening ceremony of the 2025 Nigerian Oil and Gas Conference (NOG) in Abuja.
Addressing a gathering of industry leaders and stakeholders from across the globe, Lokpobiri called for urgent reforms to revive Nigeria’s declining oil output, urging operators to either deliver results or make way for those who can.
“It is no longer accept able for critical national resources to remain in the hands of companies that use such licenses merely as leverage to access scarce capital and divert it to unrelated ventures,” the minister said in a pointed rebuke.
He disclosed that President Bola Tinubu has directed the Nigerian National Petroleum Company Limited (NNPC Ltd) Board to comprehensively review all existing operatorship arrangements in the sector, signalling a shift in policy against companies failing to deliver value.
“Joint Ventures and Financial/Technical Services Agreements are not weapons to hold the sector hostage,” Lokpobiri stated.
“If you cannot act in the nation’s interest, then step aside or step up through partnership.”
Despite reforms introduced through the Petroleum Industry Act (PIA) and other initiatives, Nigeria’s oil production has failed to rebound to expected levels.
The minister expressed frustration that the country is producing less oil today than it did before the PIA was signed, despite improved regulatory and fiscal frameworks.
“This cannot be a governance problem. What happened? And more importantly, what will we do differently?” he asked.
“The government has done a lot and is willing to do more, but the results must now speak for themselves.
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