Mkpoikana Udoma
Port Harcourt — Nigeria has intensified reforms in its oil and gas sector to eliminate middlemanism and dismantle “portfolio companies” that previously cornered contracts without delivering technical value, a move aimed at strengthening genuine indigenous operators and Engineering, Procurement and Construction, EPC, firms.
The Minister of State for Petroleum Resources (Oil) Sen. Heineken Lokpobiri, speaking recently at SAIPEC 2026 said the new direction ensures that project opportunities now go directly to technically capable Nigerian firms.
Lokpobiri noted that while Africa remains resource-rich, it continues to grapple with energy poverty and capital flight; a paradox he described as unsustainable.
“Africa must take responsibility for closing that gap,” he said, stressing that stronger local content enforcement is central to retaining value, deepening in-country capacity, and reducing dependency on foreign intermediaries.
By removing non-performing intermediaries from contract chains, the ministry according to him, aims to improve transparency in project awards, Enhance execution timelines, Strengthen cost efficiency and Build long-term technical capacity within Nigeria.
The Minister also charged the Petroleum Technology Association of Nigeria, PETAN, and other industry stakeholders to intensify self-regulation and uphold standards across the value chain.
According to him, sanitizing the sector must be industry-driven, with professionals taking collective responsibility to Weed out bad actors, Protect sector credibility, and Safeguard opportunities created for indigenous players.
Highlighting progress already made, Lokpobiri pointed to Nigerian service companies that have expanded beyond domestic participation to execute complex, technology-driven projects across Africa.
“These firms are no longer just local contractors,” he said. “They are African leaders competing confidently on the continental stage.”
The reforms could significantly reduce capital leakage, boost local job creation, and position Nigeria as a regional hub for oilfield services and EPC expertise.
With a renewed focus on capacity development, accountability, and direct engagement with capable operators, the government is betting that a more disciplined local content framework will translate into stronger project delivery and a more self-sustaining petroleum industry.
This article was originally posted at sweetcrudereports.com
Be the first to comment