The Minister of State for Petroleum Resources, Heineken Lokpobiri, has announced that Nigeria achieved a major milestone in 2025 with the signing of 28 new field development plans valued at $18.2 billion, carrying an estimated production potential of 1.4 billion barrels of oil.
Speaking in Abuja on Tuesday during his ministerial address at the opening of the 9th Nigeria International Energy Summit 2026, Lokpobiri said the country has become Africa’s top destination for oil and gas investment. He noted that four of the seven major Final Investment Decisions (FIDs) made across the continent between 2024 and 2025 were taken in Nigeria.
The annual Nigeria International Energy Summit serves as the Federal Government’s official platform for dialogue on energy policy, investment promotion, and innovation. The ninth edition carries the theme: “Energy for Peace and Progress: Securing Our Shared Future.”
According to Lokpobiri, the investment surge was a result of deliberate reforms, policy clarity, and stronger governance, which have restored confidence in Nigeria’s oil and gas sector. He described the renewed inflow of capital as evidence of Nigeria’s return to the global energy investment map after years of stalled projects and declining production.
“In 2025 alone, 28 new field development plans worth $18.2bn were signed, with the potential to yield 1.4 billion barrels of oil. Between 2024 and 2025, four of Africa’s seven major FIDs were in Nigeria. This did not happen by chance; it is the outcome of consistent reforms, clear policies, and stronger governance. These are tangible results showing that Nigeria is once again a magnet for serious investment,” he said.
The minister recalled that when the current administration took office, the upstream sector was in distress, characterized by falling production, low investor confidence, and a lack of major new projects.
“While Nigeria has vast hydrocarbon resources and a favorable mix of deepwater, shallow, and onshore fields, resource abundance alone is not enough. What sets Nigeria apart now is the legal, regulatory, financial, and structural transformation we have implemented. ‘Investment-ready’ goes beyond having reserves—it requires clarity, predictability, efficiency, and incentives,” Lokpobiri said.
He credited the Petroleum Industry Act (PIA) for providing a stable fiscal framework, clearer licensing, stronger regulation, and predictable contract terms. Cost pressures were also eased through the Upstream Petroleum Operations (Cost Efficiency Incentives) Order 2025, which grants tax credits and reduces operating costs for producers.
Highlighting the success of Project One Million Barrels, launched in October 2024, Lokpobiri said crude oil production rose to between 1.7 and 1.83 million barrels per day within a year—a roughly 20% increase. The number of active rigs jumped from 14 in 2023 to over 60, signaling the effectiveness of reforms and optimization of existing assets.
The minister also noted the completion of long-delayed asset divestments by international oil companies, which transferred onshore and shallow-water assets to Nigerian firms, adding around 200,000 barrels per day to national output.
However, Lokpobiri acknowledged ongoing challenges, particularly structural constraints in the engineering, procurement, and construction segment, partly due to misinterpretations of the Nigerian Oil and Gas Industry Content Development Act. He warned that this had led to the emergence of “briefcase EPC companies,” sidelining competent local and international contractors.
He also highlighted Africa’s $120 billion annual hydrocarbon import bill as a lost opportunity and called for stronger support for the African Energy Bank, headquartered in Nigeria.
Meanwhile, Adegbite Falade, Chairman of the Independent Petroleum Producers Group (IPPG), urged further reforms to streamline fees, reduce bureaucracy, and improve access to long-term capital. Speaking at the summit, Falade said the energy sector must leverage private capital to bridge gaps in infrastructure and maximize its contribution to national GDP.
Falade noted that indigenous producers now account for more than 50% of Nigeria’s oil output, thanks to improved pipeline availability, reduced crude losses, and stronger local participation. He emphasized that reducing bureaucracy, simplifying fees, and providing affordable capital are crucial to sustaining growth.
The summit concluded with stakeholders agreeing that Nigeria’s oil and gas sector is on a robust recovery path, driven by policy reforms, strategic investment, and collaboration between government, local firms, and international partners. The sector is positioned to expand domestic energy access and reinforce Nigeria’s role as a regional and global energy hub.
