The Federal Government has issued a strong call to International Oil Companies (IOCs) operating in Nigeria to take immediate and decisive action to significantly increase crude oil production, as the country pursues an ambitious target of 2.5 million barrels per day (mbpd) by 2027.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, delivered the charge during a panel session at the ongoing 9th edition of the Nigerian International Energy Summit (NIES) in Abuja.
Lokpobiri emphasized that the overall performance of Nigeria’s petroleum industry—and by extension the national economy—hinges on the success of upstream operations, given the sector’s critical role in generating foreign exchange earnings.
He noted that the government has already established a supportive operating environment through key reforms under the Petroleum Industry Act (PIA), tax incentives, and regulatory adjustments, leaving no excuse for underperformance.
“I have always maintained that the success of the oil and gas industry is largely dependent on the success of the upstream. From upstream to midstream and downstream, everything is connected. If we do not produce crude oil, there will be nothing to refine and nothing to distribute. Therefore, the success of the petroleum sector begins with the success of the upstream,” Lokpobiri stated.
The minister highlighted the collaborative and professional spirit among industry stakeholders and reiterated the government’s policy of equal treatment:
“There is no discrimination between indigenous producers and other operators. You are all companies operating in the same Nigerian space, under the same law. The Petroleum Industry Act (PIA) does not differentiate between local and foreign companies. While you may operate at different scales, you are governed by the same regulations.”
He stressed the expectation of mutual commitment:
“Our expectation, therefore, is that we will continue to work together, collaborate, and strengthen the upstream sector for the benefit of all Nigerians.”
Lokpobiri assured continued government backing through further reforms, tax reliefs, and regulatory measures aimed at unlocking the sector’s full potential, while urging industry players to reciprocate:
“We have provided extensive incentives to unlock the sector’s potential through reforms, tax reliefs and regulatory changes. Now is the time for industry players to reciprocate by investing, producing and delivering results.”
He warned that Nigeria’s upstream success would deliver positive spillover effects across Africa’s midstream and downstream segments, while failure would have negative continent-wide consequences.
The renewed push for higher output follows persistent shortfalls in production—averaging around 1.6 mbpd in recent periods against budgeted benchmarks—and aims to stabilize foreign exchange inflows, boost national revenue, and support broader economic recovery efforts.
Related developments include ongoing calls for environmental remediation obligations on exiting IOCs and discussions around outstanding payments owed to operators by NNPC.
