By Ono Yima | Abuja
The Federal Government has declared an end to the longstanding practice of awarding oil field licenses to companies that fail to develop them, in a bold move to ramp up national crude oil production and meet the country’s 2025 budgetary and OPEC targets.
Speaking at the 2025 Nigeria Oil and Gas Energy Week in Abuja, Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, announced that the government would no longer tolerate dormant oil fields and unproductive license holders.
“It is no longer acceptable for critical national resources to remain in the hands of companies that lack the technical or financial capacity to optimize them,” Lokpobiri said. “Or worse, those who use such licenses merely as a lever to access scarce capital, only to divert it to unrelated ventures.”
The Minister stressed that licenses held by such companies would be revoked and reassigned to capable investors.
“Our oil and gas industry has witnessed far too many cautionary tales of this nature, and we must now draw a clear line,” he added.
Reforms and Reviews Underway
As part of the broader reform agenda, Lokpobiri revealed that the government has engaged international consultants to review the 273 fees and charges imposed on oil companies in Nigeria. The goal, he said, is to ensure alignment with global best practices and create a more competitive investment environment.
“We want to ensure that our fiscal policies do not become a deterrent to serious investors,” he noted.
The conference, themed “Accelerating Energy Progress Through Investment, Global Partnerships and Innovation,” also featured major announcements from key players in the sector.
Gas Sector Pushes Forward with AKK Pipeline Progress
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said Nigeria’s over 200 trillion cubic feet of proven gas reserves hold immense economic potential. However, value would only be realized through strategic development and utilisation.
Ekpo said the country’s Decade of Gas initiative is focused on translating gas wealth into real economic outcomes—ranging from industrial growth and improved power generation to expanding LPG usage and gas-based transportation.
NNPC Achieves Milestones, Urges More Investment
Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, announced that the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline has successfully crossed the River Niger—a key milestone toward its completion, scheduled for Q4 2025.
“This significant progress was made possible through effective contract reengineering and industry-wide collaboration,” Ojulari said.
He also revealed that for the first time in recent years, Nigeria recorded 100% crude oil pipeline availability throughout June 2025, thanks to enhanced security interventions across the sector.
Despite these wins, Ojulari called for increased investment, adding that NNPC Ltd has consistently met its Joint Venture cash-call obligations, putting it in a better position to lead financing efforts across the industry.
“The Petroleum Industry Act has provided the framework. What we now need is capital, collaboration, and commitment,” he said.
Key Takeaways:
· FG to withdraw dormant oil field licenses from inactive companies.
· 273 oil sector levies under review to align with international standards.
· AKK Gas Pipeline crosses River Niger; Q4 2025 completion in sight.
· NNPC records 100% crude pipeline availability in June.
· Calls intensify for investment in Nigeria’s gas and oil development.