Nigeria’s Energy Reforms Draw Global Investors, Strengthen Local Content — Lokpobiri
By Naija Enquirer Staff
Nigeria is aggressively repositioning its oil and gas sector to attract global investors, strengthen local capacity, and accelerate sustainable energy growth, according to Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), at the ongoing PNC 2025 Forum.
Addressing industry stakeholders, Lokpobiri said Nigeria’s improved regulatory environment, supported by legal reforms under the Petroleum Industry Act (PIA) 2021, is restoring investor confidence and placing the country on track to reclaim its status as a competitive global energy hub.
“Ten years ago, investment in Nigeria’s oil sector was nearly non-existent,” he stated. “Misapplication of local content laws and regulatory inconsistencies pushed investors away. Today, the PIA marks a turning point that signals policy stability and business readiness.”
Lokpobiri stressed that Nigeria must demonstrate its competitiveness on a global scale, benchmarking its regulatory ecosystem with those of major energy hubs such as Houston, Paris, and London.
“Our investors demand certainty,” he said. “We are reviewing taxation, fees, and regulatory standards to ensure Nigeria remains competitive with Ghana, Angola, and other African peers. Consistency, predictability, and transparency are the currencies of global capital.”
Addressing Deepwater Challenges & Local Content Misconceptions
The Minister highlighted ongoing bottlenecks in deepwater projects and contractor participation, noting that misunderstandings around local content laws had contributed to inflated project costs.
“Middlemen have added inefficiencies that burden both investors and government. We are committed to direct engagement with local contractors, ensuring competition and accountability,” he said.
Lokpobiri also called for enhanced collaboration with the National Assembly to eliminate overlapping processes and streamline policy enforcement.
“Multiple committees and conflicting directives create bottlenecks. We must align our processes to retain global investors and support indigenous operators,” he added.
Local Content as a Continental Standard
The Minister reaffirmed that Nigeria’s local content laws remain a blueprint for Africa, promoting technology transfer, indigenous participation, and sector-wide growth.
“Local content laws are more than statutory requirements—they set standards for the continent,” he said. “Nigeria must lead by example, ensuring our companies grow to compete globally and export services across Africa.”
He warned that misapplying local content regulations could increase costs, dampen investor confidence, and slow the nation’s progress.
“We have the resources, the expertise, and the mandate. Now, we must ensure Nigeria becomes a destination for smart, sustainable investment,” Lokpobiri concluded.
