The Nigerian government has reportedly set a target of producing 2.06 million barrels of oil per day in 2025.
To achieve this, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has warned oil block owners who have failed to develop their assets that they risk losing their licenses.
Speaking at a Cross Industry Group meeting in Florence, Italy, organized by international oil companies (IOCs) operating in Nigeria, Lokpobiri emphasized that the government will enforce the “drill or drop” policy under the Petroleum Industry Act (PIA).
This means oil blocks that remain undeveloped for decades will be reclaimed and given to investors ready to put them into production.
“We cannot continue to have assets sitting idle for 20 to 30 years,” Lokpobiri said. “If you’re not developing your block, it adds no value to you or the country. We encourage collaboration, such as resource-sharing and farm-out agreements. Otherwise, we will take back these assets and reassign them to those willing to work.”
As of February 2025, Nigeria’s daily oil production stood at 1.67 million barrels, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Lokpobiri also urged IOCs to increase investments in Nigeria’s oil and gas industry.
He pointed out that the government has introduced investor-friendly policies, including President Bola Ahmed Tinubu’s Executive Order to incentivize deepwater investments. However, industry players must now make strong investment decisions to boost production.
He also stressed the importance of supporting local refineries, as more are set to begin operations and will require a steady supply of crude oil. Increasing production, he said, is necessary to meet both domestic and international demands.
Mr. Osagie Osunbor, Chairman of the Oil Producers Trade Section (OPTS), praised the Minister’s engagement, saying it has provided valuable insights and motivated industry players to enhance production efforts.
