Instability in governance rid Nigeria of major petroleum investment-Lokpobiri

Heineken Lokpobiri, the minister of State for Petroleum Resources (oil) has disclosed that investment in the oil and gas sector has eluded Nigeria due to the perceived instability in the nation’s governance structure.

Lokpobiri stated this while hosting the leadership of the Federal Road Safety Corps (FRSC) on a courtesy visit to Abuja on Monday.

According to him, “You will recall that before this administration, for 12 years, there has been majorly no investment in the oil sector, not just upstream, but also midstream and downstream. And it was because a lot of people felt that, Nigeria’s governance structure was not steady.

“It took too long for the PIA to be passed. The PIA was first introduced when I was in the Senate by President Yar’Adua in 2007, and 2008. That was when it was first introduced. It was not passed until 2021. And, you know, everybody wants to bring dollars to invest. We want to invest in an environment where there is certainty.

“And so investment did not come into the country for some of those reasons, together with some fiscal reasons where some people felt that our fiscal conditions were not globally competitive. But all those things are changing now. We’ve been able to bring back the confidence that is needed for investments to flow in.”

The minister also explained that moribund pipelines were the reason Nigeria still transported petroleum products through trucks, but insisted that only certified drivers are tankers would be allowed to ferry petroleum products.

“Ordinarily, petroleum products ought to be transported through pipelines to nearer locations where people can come, and take to their final destination.

“But most of the pipelines are already outlived their lifespans, and it is very capital intensive to replace them,” he said.

On his part, Shehu Mohammed, FRSC Corps Marshal, commended the Minister for the positive reforms being embarked upon in the petroleum industry in Nigeria by the current leadership.

He noted the existing peace and harmony in the Niger Delta areas and requested collaboration for sustained peace and development in the oil industry.

Mohammed disclosed that as part of the FRSC’s commitment to safety in the movement of petroleum products, personnel of the Corps are being deployed to major depots across the country to ensure compliance with safety rules and regulations with particular reference to the policy on safety to load.

He requested the Minister to assist the Corps with some logistics including patrol vehicles and ambulance for enhanced road surveillance and prompt response to distress calls.