FG: Foreign Firms Mobilise $21bn to Invest in Nigeria’s Oil, Gas Sector
• Lokpobiri says two non-binding MoUs sealed with foreign investor groups •Calls for more exploration campaigns to discover more barrels Peter Uzoho The federal government has secured commitments from foreign
Federal Government secures $21 billion investment commitment for Nigeria’s oil and gas sector, Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri disclosed at the 44th annual international conference of the Nigerian Association of Petroleum Explorationists (NAPE). The commitments emerged from his engagements at the ADIPEC conference in Abu Dhabi, where foreign investors expressed renewed interest in Nigeria as a diversification destination amid geopolitical risks in the Gulf region.
Lokpobiri highlighted two non-binding MOUs sealed with investor groups, one willing to mobilise $15 billion, citing spare capacity in the Gulf region, and the other committing $6 billion, as they seek to diversify investments due to disruptions elsewhere. The Minister emphasized linking foreign investors with local companies to facilitate investment discussions, noting potential disruptions in other locations would ensure sustained cash flow for Nigeria.
He stressed the urgency of securing new capital, citing the weaponisation of capital by Western lenders against Africa, leading to the creation of the African Energy Bank. Since his appointment in August 2023, oil production has surged by over 80 percent, rising from about one million barrels per day to over 1.8 million barrels.
Active rigs have increased from 10 to over 60, with continuous drilling campaigns. However, Lokpobiri cautioned about a potential manpower crisis if Nigeria fails to rebuild training pipelines for geoscientists and petroleum engineers, recalling the closure of a training incubation centre in Warri. He advocated for the establishment of a NAPE academy and urged the industry's support, as well as extending assistance to universities with a lack of practical experience among lecturers.
The Minister highlighted Nigeria's 37 billion barrels of oil reserves and 215 trillion cubic feet of gas deposits, urging aggressive exploration to potentially double reserves, adding that the global energy landscape is being redesigned, and Nigeria has strategically positioned itself in the new map.
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