Despite TotalEnergies snub, Oil Minister anticipates over $16bn investments into Nigeria
…As Lokpobiri, Ekpo insist Tinubu has made Nigeria attractive to investors
Despite a recent outburst by the Chief Executive Officer of TotalEnergies, Patrick Pouyanné at the Africa CEO Forum revealing that the company chose Angola over Nigeria to make a $6 billion investment, Nigeria’s Minister of Petroleum Resources (oil), Senator Heineken Lokpobiri has declared that the country is anticipating over $16 billion significant investments in the oil and gas sector.
The TotalEnergies CEO had stated that the company chose Angola over Nigeria because of the violative state of the Niger Delta noting that the company has not conducted oil exploration in the region for 12 years.
Reacting, the Minister revealed that the country aims to achieve a minimum of $20 billion worth of investment in the coming months while assuring investors of a stable policy environment.
Speaking at a sectoral Ministerial briefing to commemorate President Tinubu’s one year in office, Lokpobiri said his Ministry does not deal primarily with executing projects but fostering an enabling environment needed to attract investments into the Nigerian oil and gas sector.
“The government is working, and its effort is already bringing back investors’ confidence in this present administration. The government has done what the government is expected to do to attract investors,” he declared.
He added, “Somebody was asking me that Total announced $6 billion of proposed investments in Angola. I’m also very happy to announce that we have a company that will announce a $10 billion investment in deep offshore in the next few weeks. And they are in town, waiting for me.”
“These were companies that left Nigeria because they believed that there were inconsistent policies, and the atmosphere was unfavourable, but following this administration’s policies of deliberately creating the best environment that are competitive globally, they are all coming back.
“There’s also another company that will invest about $5 billion. These are not stories, but I don’t want to preempt the announcement, so I let it be that we announce it so that Nigerians will know that Angola cannot be compared to Nigeria. In Africa, Nigeria is the leading oil and gas producer and we are still dominating that position.
“Our target in 2024, having worked very hard to create an enabling environment, is to ensure that we have a minimum of $20 billion in investment this year.”
Speaking further, the Minister noted that the only way to sustain increasing production and generate money that the government needs to finance the economic programs is the oil and gas sector, stating that the quickest way to the nation’s economic prosperity is the oil and gas sector.
“Every country that has oil prioritises investment in oil. And Nigeria can never be an exception. So what we are doing is to see how we can create that investing opportunity for companies to come and invest.
“The way the oil and gas sector works is this, if you have an oil block and you do not sustain your drilling program, it’s just like somebody who has dug a well. As you keep fishing, it will keep going down.
“This morning I was with a company and that company is saying that they are happy that the slum beach is back to town and they have a drilling program of drilling a hundred wells. You know what that means? That will be another major investment that will attract billions of dollars. The Ministry of Petroleum is not a ministry where you execute projects.”
He explained even though Nigeria has the highest reserves in Africa, there had been no significant investments. This, he said, has hindered the country from seeing the benefits of these huge reserves.
“You ask yourself the question, why did the companies in Nigeria fail to invest in the last 12 years? The reason is simple. The PIA took longer than ever to be passed and nobody wants to invest billions of dollars in any client where there’s uncertainty.
“Now we have told them that the PIA is now passed. We have a stable governance structure. We have the best fiscals. As the President has signed executive orders, we have the best fiscal terms that are globally competitive. And we’re saying that you have a long history with Nigeria. So come back to Nigeria and invest.
“And that is why those who want to invest in the $10 billion is an old IOC. Those who want to invest the $5 billion is an old IOC. There are also a lot of smaller companies that are coming in. One is in fact proposing to invest $1.6 billion,” he said.
“We have countries that have perfectly integrated policies like Angola. So, we went to Angola and announced a very large $6 billion project at the beginning of the week because their framework is stable. So we know where we go,” he added.
However, Lokpobiri said that the FG has had and will continue to have a stakeholder’s meeting with oil majors in the country to foster a way forward in the sector.
“We are already bringing back investors because now they have confidence in this present administration,” he said.
In the same vein, Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo has stated that President Bola Ahmed Tinubu has made investing in Nigeria’s gas sector attractive.
The Minister stated this as he informed investors and other stakeholders in the gas sector of regulatory frameworks that are now in place, incentivises investments, streamlines bureaucratic processes, and provides clarity on fiscal terms.
Delivering a keynote speech at a colloquium on promoting investment in Nigeria’s gas sector organised by Babalakin @ Co in Abuja, he assured investors that the President Bola Tinubu-led Federal Government has created a conducive environment for investments in the gas sector.
He said, “The Petroleum Industry Act (PIA), and the recent Presidential Directive for Oil and Gas Companies on Tax Incentives, Exemption, Remission, etc. by His Excellency, President Bola Ahmed Tinubu have created a conducive environment for investment. These reforms ensure transparency, accountability, and regulatory certainty, making Nigeria an attractive destination for investors.”
Ekpo, represented by the Executive Director, Midstream and Downstream Gas Infrastructure Fund (MDGIF), Mr. Oluwole Adama, said Nigeria stood at a pivotal moment in its history, particularly in the realm of energy.
According to him, with vast reserves of natural gas, the country possesses a resource that holds the key to unlocking immense potential for economic growth, industrialisation, and sustainable development.
He however, noted that realising this potential requires concerted efforts, innovative strategies, and unwavering commitment from both the public and private sectors.
“Promoting investments in Nigeria’s gas sector is not merely an economic imperative, it is a commitment to harnessing our natural resources for the prosperity and well-being of current and future generations,” said Ekpo.
“By embracing bold strategies, fostering collaboration, and upholding the highest standards of excellence, we can unleash the transformative power of gas to drive inclusive growth, create jobs, and propel Nigeria towards a brighter and more sustainable future,” he added.
