NOGIC Act loopholes are fueling ‘briefcase investors’ in petroleum sector- Lokpobiri 

Heineken Lokpobori, Nigeria’s minister of petroleum resources (oil) has decried the rise in ‘briefcase’ Engineering, Procurement, and Construction (EPC) companies in the Nigerian oil and gas sector, stating that their operations are forcing major companies out of Nigeria and denying qualified indigenous companies the opportunity to not only play in the sector but also grow.

Lokpobiri, who spoke at the Nigeria International Energy Summit in Abuja on Tuesday, blamed the influx of these briefcase investors on the misinterpretation of the Nigerian Oil and Gas Industry Content Development Act (NOCIG Act).

The implication of this, he said, is continuous delay to projects kick off and non-competitiveness in the EPC space, which also contributes to the high cost of production.

He said, “Recognising that the FID is just a start for the project, we noticed a gap in the service sector, especially with regards to the deep offshore. A misinterpretation of the NOGIC Act led briefcase EPC companies to force major EPCs out of Nigeria and to deny qualified indigenous companies the opportunity not only to play in the sector but also to grow.

“We didn’t fold our hands, we leveraged the Presidential order to work with service providers to return to the country, we are also creating an environment where they can exist side by side with serious and competent Nigerian players.”

The minister speaking further emphasised that Nigeria possesses an enormous hydrocarbons endowment, and a geography that combines deepwater, shallow, and onshore acreages is a fact.

He, however, said resource richness alone is not enough, adding that what makes Nigeria now different is the legal, regulatory, financial, and structural transformation we are delivering.

“Because investment-ready means more than just having reserves; it means having clarity, predictability, efficiency, incentives, and alignment. When this government started, this sector was struggling, with production and capital flight, and investment had stalled.

“For more than a decade, there were no major final investment decisions on new projects. Investors were cautious, and confidence was lacking; that was our reality.

We implemented the Petroleum Industry Act (PIA), which gives investors a stable fiscal framework, clearer licensing, stronger regulation, protection for host communities, local content provisions, and ensures that contracts and terms are predictable.

“We made moves to reduce costs in upstream operations: the Upstream Petroleum Operations (Cost Efficiency Incentives) Order 2025 grants tax credits to companies, lower unit operating costs and other far-reaching fiscal regimes.

We launched ‘Project One Million Barrels’ in October 2024. In less than a year, production rose to between 1.7 and 1.83 million barrels per day, up by roughly 300,000 barrels in July 2025 alone.

“The number of active rigs jumped from a paltry 14 in 2023 to over 60 as at today. These are signs that the reforms are working, that idle assets are being activated, and existing assets are being optimised,” he added.

In his remarks, Ekperikpe Ekpo, minister of state for petroleum resources (gas) explained that Nigeria’s energy strategy is firmly anchored within the realities of the global energy transition and Africa’s unique development imperatives.

He said that while the world accelerates toward lower-carbon systems, the African continent continues to grapple with energy poverty, industrial underdevelopment, and limited access to reliable power.

“These realities compel us to pursue a transition that is not only green, but also just, inclusive, and pragmatic.

” Nigeria is therefore advancing an energy pathway that balances climate responsibility with development needs, leveraging our abundant natural gas resources to power industries, expand access, and create jobs.

“This journey is not one that government can undertake alone. I acknowledge the vital contributions of federal and state governments, international investors, indigenous and multinational energy companies, financial institutions, host communities, civil society organizations, and our development partners. Your collaboration remains essential to building an energy system that delivers prosperity while sustaining peace,” he added.