FG has declared an end to dormant oil licenses as it targets higher production and budget goals.
In a decisive policy shift aimed at boosting Nigeria’s oil output and achieving its 2025 budgetary targets, NewsOnline Nigeria reports that the Federal Government on Tuesday announced it would no longer tolerate idle oil field licenses.
This Nigeria news platform gathered that operators lacking the technical or financial capacity to develop awarded fields will face license revocation.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, delivered the warning during the 2025 Nigeria Oil and Gas Energy Week in Abuja, themed “Accelerating Energy Progress Through Investment, Global Partnerships and Innovation.”
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“As part of our national drive to maximise oil production, the Federal Government will ensure that only committed and capable investors retain control of Nigeria’s upstream oil assets,” Lokpobiri said.
He noted that with global financing for oil and gas projects growing more restrictive, it is critical to prevent national assets from being held by companies that lack the capacity to develop them.
“It is no longer acceptable for strategic resources to remain dormant in the hands of operators who either lack the technical or financial means or, worse, use licenses as leverage to access capital for unrelated ventures,” he said. “We have seen too many cautionary tales. Now, we must draw a line.”
To reform the regulatory framework, the minister revealed that the government has engaged an international consultant to review and streamline the 273 different fees and charges oil companies face in Nigeria, aligning them with global standards.
In his address, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, underscored the need to unlock value from Nigeria’s over 200 trillion cubic feet of proven gas reserves. He said the ongoing Decade of Gas initiative aims to translate this gas wealth into socio-economic growth.
“We are committed to harnessing gas for industrialisation, expanding power generation, increasing LPG usage, driving gas-to-transport adoption, and scaling up exports,” Ekpo said.
Also speaking at the conference, Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, highlighted key milestones in the gas and crude oil segments.
He announced the successful crossing of the River Niger by the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline — a major step toward completing the project by Q4 2025.
“This achievement represents a critical milestone, made possible through innovative contract reengineering and collaborative efforts across the industry,” Ojulari said.
He also disclosed that Nigeria achieved 100% crude oil pipeline availability in June 2025 — a feat attributed to intensified security efforts spearheaded by NNPC Ltd.
Ojulari called for greater investment in the sector and affirmed that, under the Petroleum Industry Act (PIA), NNPC Ltd is now well-positioned to lead in financing upstream projects.
“Consistently meeting our cash-call obligations has restored industry confidence and helped turn around production performance,” he said.
With these bold declarations, the Federal Government signals a stricter enforcement regime aimed at unlocking dormant oil assets and revitalising Nigeria’s energy sector to meet critical economic targets.
