According to Lokpobiri, the sector provides around 85% of government revenue and served as a vital source of foreign exchange while also stating the government's interest in increasing revenue through crude oil.
The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, has restated the government's commitment to ensuring development in the all important petroleum sector of the country.
Lokpobiri spoke while addressing gathering of the oil producers trade section which consists of a group formed by the five oil giants operating in Nigeria at the Cross Industry Group (CIG) meeting in Istanbul, Turkey.
This was stated in a release on Saturday issued by Nneamaka Okafor, the Special Adviser on Media and Communication to the Minister.
According to Lokpobiri, the sector provides around 85% of government revenue and served as a vital source of foreign exchange while also stating the government's interest in increasing revenue through crude oil.
According to him, the government is committed to addressing operational bottlenecks and upgrading infrastructure.
“As the global landscape shifts towards cleaner energy, he emphasised the necessity for Nigeria’s oil and gas sector to remain resilient, competitive, and profitable.”
“In the short term, our focus remains on increasing revenue from crude oil production,” Lokpobiri stated.
According to him, Nigeria is also pivoting towards clean energy with a mix of renewable energy, in line with global transition.
“We are engaging communities and encouraging partnerships that foster local ownership of critical assets,” he said.
Efforts include increased military support, particularly from the Nigerian Navy and Joint Task Force (JTF), combined with community engagement and economic empowerment initiatives to combat pipeline vandalism and oil theft.
He noted that the government has also implemented technology-driven solutions, including drone and satellite surveillance, to enhance the security framework and detect potential threats to the industry.
The Minister noted the comprehensive package of reforms and incentives to revitalize Nigeria's oil and gas sector, aiming to attract greater investment and stimulate economic growth.
"Key elements include the VAT Modification Order 2024 and the Tax Incentives Order for deep offshore oil and gas production, offering fiscal benefits to companies involved in the sector.
“In addition, directives focus on reducing contracting costs and timelines, mandating that the procurement cycle be streamlined to six months, enhancing efficiency for investors," said Sen. Lokpobiri.