Nigeria Adopting Regulatory Standards To Attract Higher Oil And Gas Investments- Minister

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has said that Nigeria is benchmarking taxation, fees, and regulatory standards to ensure the country is competitive with Ghana, Angola, and other African peers.

Speaking at the Practical Nigerian Content (PNC) Forum, hosted by the Nigerian Content Development and Monitoring Board (NCDMB), in Bayelsa State, Lokpobiri, said Nigeria is also aggressively repositioning its oil sector to attract global investors, boost local capacity, and ensure sustainable energy growth.

He said the nation’s regulatory clarity and legal reforms are restoring investor confidence and repositioning Nigeria as a competitive oil and gas hub.

“Ten years ago, investment in Nigeria’s oil sector was nearly non-existent,” he said. “Misapplication of local content laws and regulatory inconsistencies deterred serious investors. Today, the passage of the Petroleum Industry Act (PIA) 2021 is a turning point that signals policy stability and business readiness.”

The Minister highlighted that Nigeria must now prove itself as a globally attractive investment destination, comparing the environment to established energy hubs like Houston, Paris, and London.

“Our investors demand certainty,” Lokpobiri stressed. “We are benchmarking taxation, fees, and regulatory standards to ensure Nigeria is competitive with Ghana, Angola, and other African peers. Consistency, predictability, and transparency are the currencies of global capital.”

He also addressed challenges in deepwater projects and local contractor participation, noting that misunderstandings around local content laws had 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 further called for improved collaboration with the National Assembly, stressing that a coherent regulatory approach is crucial for attracting long-term investment.

Multiple committees and overlapping processes create bottlenecks. We must streamline communication and policy enforcement to retain global players and foster indigenous growth,” he said.

On local content, the Minister reaffirmed its role in enhancing indigenous capacity, technology transfer, and Africa-wide leadership.

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 concluded with a warning that misapplied local content laws could inflate costs, erode investor confidence, and slow sectoral growth, urging all stakeholders to embrace efficiency, accountability, and cooperation.

“We have the resources, the expertise, and the mandate. Now, we must ensure Nigeria is a destination for smart, sustainable investment,” Lokpobiri stated.

The Minister said the country’s energy landscape has been transformed under President Bola Ahmed Tinubu’s administration, with improved regulatory stability and global competitiveness.

The Minister highlighted the urgency of ramping up crude oil production and attracting strategic investments. He warned that inefficiencies in deepwater projects due to misapplied local content regulations have increased costs, calling for direct engagement with local contractors to reduce financial burdens and enhance efficiency.

“Middlemen often add unnecessary costs,” he said. “Our goal is to bring DPC contractors back into the fold and create competitive markets for indigenous companies.”

Also speaking, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo,

Detailed Nigeria’s decade-long strategy under the Decade of Gas Initiative, emphasizing infrastructure expansion, domestic gas utilisation, and industrial development.

“Gas is the backbone of Nigeria’s industrial future,” Ekpo said. “From fertiliser plants to petrochemical complexes, gas powers value addition, local enterprise, and regional integration. Projects like the AKK Pipeline, OB3 Pipeline, and the Nigerian–Equatorial Guinea Gas Pipeline are unlocking markets and creating jobs.”

Ekpo outlined domestic gas initiatives, including CNG adoption, LPG penetration, clean cooking solutions for women and youth, and small- and large-scale LNG expansion.

He noted that these interventions not only address energy poverty but also stimulate local enterprise.

“Local content is no longer just policy; it is a national imperative,” Ekpo stressed. “Through NCDMB’s programmes—industrial parks, human capacity development, and local manufacturing support—we are creating stronger supply chains that retain value and strengthen national capability.”

Both Ministers highlighted the importance of a collaborative ecosystem.

Lokpobiri stressed the need for cooperation with the National Assembly to streamline processes, while Ekpo underscored partnership with indigenous companies, universities, and research institutions to transform bright ideas into market-ready solutions.

The forum also marked a major milestone in local content financing.

NCDMB Executive Secretary, Engr. Felix Ogbe, and Dr. Olasupo Olusi, MD Bank of Industry, signed an MoU for the $100 million Nigerian Content Intervention Fund (NCIF) Equity Scheme, aimed at providing equity financing to high-growth indigenous energy service companies.

“The NCIF Equity Fund will catalyse high-impact investments, support technology transfer, and enhance competitiveness,” Dr. Olusi said. “With a $5 million single obligor limit, it is designed to scale indigenous enterprises sustainably.”

The forum also reviewed the Board’s achievements, including the Project 100 companies initiative, issuance of NCDF Compliance Certificates, community contractor disbursements, and Nigerian Content Academy lectures, reinforcing Nigeria’s trajectory toward industrialisation and energy self-reliance.

Closing the session, the Ministers reiterated that energy security, local content, and strategic investment form the cornerstone of Nigeria’s national development.

“Nigeria’s industrial and energy future is not ahead of us; it is in front of us, waiting to be built,” Lokpobiri said. “With clear policies, strategic investments, and local capacity development, we will unlock the full potential of our resources.”