Petroleum Industry Vital to Nigeria’s Economy, Says Minister

Feyisayo Oyebanji, Abuja

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The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has underscored the pivotal role of the petroleum industry in shaping Nigeria’s fiscal and monetary policies.

Speaking on the sector’s significance, Lokpobiri highlighted that crude oil accounts for approximately 90% of the country’s foreign exchange earnings and contributes up to 65% of government revenue. He emphasised the industry’s importance in sustaining Nigeria’s economic framework and driving national development.

In his keynote address, the minister highlighted that the Petroleum Industry Act (PIA) repealed about 10 laws previously governing the oil and gas sector, consolidating them into a single, comprehensive act.

Sen. Lokpobiri stated this during the 8th edition of the National Council on Hydrocarbons (NCH), held in Asaba, Delta State, Southern Nigeria.

The theme of the event was: “The Petroleum Industry Act (PIA) 2021: The Journey So Far.”

Reflecting on the history of the NCH, the minister noted that the council was established in 2016 as an annual forum to gather ideas for enhancing policy formulation and implementation in the oil and gas (energy) sector. He stated:

“The PIA passed into law in 2021 after over two decades of deliberation and is now regarded as the ‘new bride’ of the sector. Its proper implementation is expected to transform not only the energy industry but also the entire nation.”

While acknowledging the significant changes brought by the PIA in its two years of operation, Sen. Lokpobiri noted that the scale and impact of the reforms have been both profound and far-reaching. However, he stressed the need for ongoing efforts to address gaps and improve implementation.

He urged the Council to approach their discussions with focus and objectivity, stating:

“Remember, the decisions you take today will influence the future of this industry positively or otherwise.”

The Executive Governor of Delta State, represented by the Secretary to the State Government, Dr. Kingsley Emu, lauded the collective commitment to maximising Nigeria’s hydrocarbon potential for national benefit. He reaffirmed Delta State’s dedication to supporting the growth of the hydrocarbon sector, stating:

“As the highest producer of hydrocarbons, Delta State recognises the pivotal role this industry plays in shaping our nation’s economy. We are dedicated to creating an enabling environment for its continued prosperity.

“Together, we can overcome the complexities of the hydrocarbon landscape and unlock its full potential for the benefit of our people.

The highlight of the 8th NCH meeting was the presentation and adoption of the communiqué, which encapsulates the outcomes of the deliberations and paves the way for future advancements in the petroleum industry.

 

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