The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has said the enactment of the Petroleum Industry Act (PIA) has brought an end to the discretionary allocation of oil blocks in Nigeria, describing the reform as a major step towards entrenching transparency and competitiveness in the country’s upstream petroleum sector.
Lokpobiri stated this on Tuesday at the Commercial Bid Conference for the 2025 oil and gas licensing round organised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
According to him, the PIA has removed the discretion that previously existed in the award of oil blocks, ensuring that licences are now allocated strictly through a transparent and competitive process.
“The PIA, unfortunately for some people, has prevented discretionary allocation of oil blocks,” he said jokingly.
“I wish I was the minister when discretionary allocation was possible because I would have exercised my discretionary powers and allocated them to those who truly have the requisite financial and technical capacity to develop them.”
He stressed, however, that the new legal framework guarantees fairness and credibility in the licensing process, adding that nobody, including government officials, has access to bidders’ commercial offers before they are officially opened.
“Nobody knows the content of the commercial bid that you have submitted,” he told prospective investors, assuring them of a level playing field.
Lokpobiri also warned successful bidders against treating oil block licences as speculative assets.
Recalling past licensing rounds, he said some awardees merely travelled around international conferences showcasing their licences in search of partners instead of developing the assets.
“In the past, I have seen people go round conferences across the world carrying licences and looking for partners who never came. Those days must be over.
“The licences issued today must translate into actual field development and production,” he said.
The minister described Nigeria as one of the world’s most attractive investment destinations, citing the country’s strategic location and ongoing reforms in the petroleum industry.
According to him, developments in the global energy market have further increased the value of Nigeria’s hydrocarbon assets, making investment in the country’s oil and gas sector more attractive.
Also speaking, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the commercial bid conference marked another milestone in Nigeria’s licensing process and reflected the Federal Government’s commitment to transparency, competitiveness and credibility.
He said the licensing exercise was being conducted in line with the provisions of the Petroleum Industry Act 2021 and aligned with President Bola Tinubu’s drive to attract investment into the energy sector.
“The Federal Government remains firmly committed to creating an enabling environment that attracts investment, accelerates exploration and production, and unlocks the full value of Nigeria’s hydrocarbon resources,” Ekpo said.
He noted that the licensing round would play a crucial role in achieving the objectives of the Decade of Gas initiative by attracting fresh upstream investments needed to grow gas reserves and domestic supply.
According to him, increased investment in upstream gas development will support industrialisation, improve energy access and strengthen Nigeria’s position as a regional and global energy supplier.
Ekpo added that the Petroleum Industry Act, alongside the administration’s fiscal and policy reforms, had significantly boosted investor confidence by providing regulatory certainty, transparency and ease of doing business.
He commended the leadership of the NUPRC for conducting the commercial bid conference in accordance with international best practices.
Addressing prospective investors, he urged them to take advantage of the opportunities offered by Nigeria’s abundant oil and gas resources, large domestic market and investment-friendly policies.
“Nigeria remains one of the most attractive investment destinations in the global energy industry,” he said.
