Nigeria Breaks Decade-Long Oil Investment Drought with Fresh Capital Inflows

The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, has declared that Nigeria’s oil sector is now attracting significant investments after a ten-year hiatus. This period of stagnation, which crippled growth and left numerous oil blocks inactive, has been reversed following reforms enacted under President Bola Tinubu’s administration.

The announcement was made during a session on oil sector collaboration held by the United States-Nigeria Council on the sidelines of the United Nations General Assembly in New York. Minister Lokpobiri attributed this positive shift to the creation of a globally competitive and attractive investment atmosphere through bold policy changes. Key to this transformation is the implementation of the Petroleum Industry Act (PIA), which provides a robust legal framework praised for its investor-friendly provisions.

The government is actively courting major international Engineering, Procurement, and Construction (EPC) firms to return to the country, assuring them that previous barriers such as contracting inefficiencies and regulatory uncertainty have been dismantled. The minister highlighted that the return of these key players is directly tied to a pipeline of new projects, with the government offering incentives for deepwater operations, including reduced royalty rates and streamlined processes.

This development signals a concerted effort by the government to reposition Nigeria as a dependable energy hub and restore confidence among global investors.