Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made this known on Monday at the opening ceremony of the 2025 Nigerian Oil and Gas Conference (NOG) in Abuja.

The Nigerian Government has issued a stern warning to oil companies sitting on dormant oil fields, declaring that it will no longer tolerate underperformance in Nigeria’s petroleum sector.

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made this known on Monday at the opening ceremony of the 2025 Nigerian Oil and Gas Conference (NOG) in Abuja.

Addressing a gathering of industry leaders and stakeholders from across the globe, Lokpobiri called for urgent reforms to revive Nigeria’s declining oil output, urging operators to either deliver results or make way for those who can.

“It is no longer acceptable for critical national resources to remain in the hands of companies that use such licenses merely as leverage to access scarce capital and divert it to unrelated ventures,” the minister said in a pointed rebuke.

He disclosed that President Bola Tinubu has directed the Nigerian National Petroleum Company Limited (NNPC Ltd) Board to comprehensively review all existing operatorship arrangements in the sector, signalling a shift in policy against companies failing to deliver value.

“Joint Ventures and Financial/Technical Services Agreements are not weapons to hold the sector hostage,” Lokpobiri stated.

“If you cannot act in the nation’s interest, then step aside or step up through partnership.”

Despite reforms introduced through the Petroleum Industry Act (PIA) and other initiatives, Nigeria’s oil production has failed to rebound to expected levels.

The minister expressed frustration that the country is producing less oil today than it did before the PIA was signed, despite improved regulatory and fiscal frameworks.

“This cannot be a governance problem. What happened? And more importantly, what will we do differently?” he asked.

“The government has done a lot and is willing to do more, but the results must now speak for themselves.”

He challenged operators to demonstrate commitment through performance, not rhetoric, stressing that increased production is vital to Nigeria’s economic recovery and national development goals.

“Show cause by performance, not promises,” Lokpobiri charged the operators, stressing, “We have the resources. We have the talent. Now, we are building the right environment.”

Turning to engineering, procurement, and construction (EPC) activities in the oil sector, the minister announced forthcoming reforms aimed at strengthening compliance with the Local Content Act.

He criticised the recurring practice of contract awards to “briefcase contractors” who then subcontract jobs to more capable firms.

“We are returning to the true spirit of the Local Content Act, one that ensures both large and small companies coexist and grow together,” he said.

He also called on EPC firms to increase their physical presence and reinvest in Nigeria beyond attending industry exhibitions.

Highlighting Nigeria’s global ambitions, Lokpobiri reaffirmed the country’s commitment to building strategic partnerships across the African continent and beyond.

He cited ongoing collaborations with international bodies such as the African Petroleum Producers Organisation (APPO), the Organisation of the Petroleum Exporting Countries (OPEC), and the International Energy Charter (IEC).

“We believe Nigeria’s growth must catalyse Africa’s prosperity,” he said, adding, “We will continue to play a leading role in shaping Africa’s voice in global energy diplomacy.”

The minister also provided an update on the African Energy Bank, a landmark initiative designed to reshape energy financing across the continent.

Lokpobiri confirmed that Nigeria has fulfilled all its obligations as the host country and that preparations for the leadership appointment and formal launch are underway.

“We are firmly on course for the official launch,” he noted. “Africa is not asleep; we are determined to take our place in the global energy financing space.”

Declaring the weeklong conference officially open, Lokpobiri urged participants to go beyond discussions and embrace concrete action.

“This is not just a conference. It is a call to act,” he emphasised. “Let us accelerate progress not for ourselves alone, but for the millions of Nigerians whose lives depend on this industry.”