In a decisive move to reinvigorate Nigeria’s oil production capacity, the Federal Government has announced plans to revoke licenses from oil companies that have failed to develop their allocated fields. This was disclosed by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, as part of efforts to boost national crude output and meet the country’s OPEC quota and fiscal projections.
Lokpobiri emphasized that only firms with proven capacity and readiness to produce will retain their licenses. “We can no longer allow critical assets to lie fallow while the nation loses valuable revenue. Companies sitting on licenses without action must give way to those ready to work,” the minister stated.
The government’s renewed stance is also tied to broader reforms in the sector, including a comprehensive review of industry fees, royalties, and operational benchmarks to encourage efficiency and accountability. Additionally, the administration is intensifying the implementation of the Decade of Gas Initiative, a strategic framework to position Nigeria as a leading gas-powered economy, attract investment, and unlock value across the gas value chain.
Nigeria has consistently struggled to meet its assigned OPEC production quota due to underinvestment, operational setbacks, and security concerns in oil-producing regions. By revoking dormant licenses, the government hopes to reassign these assets to capable investors and companies willing to commit to immediate development.
The oil sector remains a cornerstone of Nigeria’s economy, and this bold move is seen as a crucial step in restoring confidence, increasing revenue, and sustaining energy security.