The Nigerian federal government has set an ambitious target of increasing oil production to 2.5 million barrels per day (bpd) by the end of 2025, assigning this goal to the newly appointed management of the Nigerian National Petroleum Corporation (NNPC) Ltd. Heineken Lokpobiri, the Minister of State for Petroleum Resources, made this announcement during an interview at the Oil Technology Conference (OTC) Africa Energy Forum in Houston, Texas. Initially, President Bola Tinubu had set the target at 2 million bpd, but after discussions, it was raised to 2.5 million bpd, signaling the government’s confidence in the sector’s recovery.
The Minister expressed optimism that this target is achievable, citing that oil production had previously reached 2.5 million bpd even during the pandemic when no new investments were made. Lokpobiri emphasized that the government is addressing key issues like vandalism and oil theft, which have hindered production in the past. The recent reforms initiated by President Tinubu are also expected to boost sectoral growth, and the implementation of the ‘Drill or Drop’ policy under the Petroleum Industry Act (PIA) aims to drive further investment and exploration.
Under the new leadership of NNPC Ltd., production has already increased from 1 million bpd to 1.8 million bpd, further encouraging confidence that the set target of 2.5 million bpd is within reach. The government has also taken steps to eliminate the bottlenecks previously hampering growth, which, according to Lokpobiri, is key to meeting the new target. He believes that the reforms and focused attention on the oil sector will bring significant improvements.
In addition to local efforts, the Minister commented on the global outlook for fossil fuel production, especially in the context of international energy politics. He pointed out that despite the World Bank halting its funding for fossil fuel projects, Nigeria remains focused on ensuring investment through partnerships with International Oil Companies (IOCs) and other funding sources. Lokpobiri stressed that while global efforts are focused on emission reductions, the world continues to rely on fossil fuels for energy production, particularly in industries involved in manufacturing electric vehicles and renewable energy technologies.
Lokpobiri concluded his statements by urging global investors to take advantage of Nigeria’s competitive regulatory framework and attractive fiscal terms. He reaffirmed that Nigeria remains the prime destination for investment in the energy sector, highlighting the country’s efforts to create a favorable environment for both conventional and emerging energy sources. The African Energy Forum at OTC serves as a critical platform for discussing investment opportunities and addressing the challenges facing Africa’s oil and gas exploration industry.
Source: The Sun