FG Woos Investors with 200,000 bpd Gains, 5.5bn Oil Sector Boost!

FG Woos Investors with 200,000 bpd Gains, 5.5bn Oil Sector Boost!

Reported by David Joshua | Sele Media Africa

The Federal Government says recent divestments by International Oil Companies (IOCs) have contributed approximately 200,000 barrels per day (bpd) to Nigeria’s crude production. Coupled with fresh capital inflows, this is part of its strategy to stabilize and revive the oil sector.

What the Government Claims Its Motivation

• The Minister of State for Petroleum, Senator Heineken Lokpobiri, has repeatedly affirmed that completing stalled divestment deals has “boosted local capacity and increased national crude output.” [1]
• He explained that the federal government cleared key bottlenecks, sped regulatory approvals, and created more investor‑friendly conditions to attract deeper investment. [2]
• To further court investors, the FG also removed the “signature bonus” requirement for oil block bids—making upfront payments contingent on immediate production activity. [3]

– Official data show Nigeria secured 17 billion in oil and gas sector investments in 2024, reinforcing confidence in ongoing reforms. [4

Independent Context & Risks

• A report by The Nation confirms that indigenous companies have already added 165,000 bpd to output, primarily by acquiring divested onshore assets. [5]
• The Independent Petroleum Producers Group (IPPG) has called for acceleration of IOC divestments, estimating that resolving them could unlock over 200,000 bpd and 1.5 billion cubic feet (bcf) of gas daily. [6]
• While divestment promises are substantial, technical challenges remain: reactivating idled wells, securing funding for field development, and managing decommissioning liabilities. [7]
• In one cautionary note, analysts warn that without sustained reforms and security, gains may be short‑lived, especially in a sector plagued by theft, sabotage, and regulatory uncertainty.

Citations:

1. Vanguard News: www.vanguardngr.com/2025/06/divestment-in-nigeria-contributed-to-increased-oil-production-boosted-local-capacity-sen-lokpobiri/?utm_source=chatgpt.com
2. THISDAYLIVE: www.thisdaylive.com/2025/05/15/fg-nigeria-attracted-over-8bn-in-deepwater-oil-gas-fids-in-less-than-one-year/?utm_source=chatgpt.com
3. Vanguard News: www.vanguardngr.com/2024/05/oil-bloc-fg-removes-signature-bonus-to-woo-investors/?utm_source=chatgpt.com
4. The Guardian Nigeria: guardian.ng/news/nigeria-records-17b-investment-in-oil-sector-says-nnpcl/?utm_source=chatgpt.com
5. The Nation Newspaper: thenationonlineng.net/indigenous-operators-add-165000-bpd-to-oil-output/?utm_source=chatgpt.com
6. Leadership News: leadership.ng/speed-up-ioc-divestments-to-unlock-200000bpd-oil-1-5bcf-gas-ippg/?utm_source=chatgpt.com
7. The Nation Newspaper: thenationonlineng.net/fg-moves-to-secure-400m-decommissioning-liabilities/?utm_source=chatgpt.com

About The Author

Marian Opeyemi Fasesan

editor

Marian Opeyemi Fasesan is a dynamic journalist and editorial leader committed to excellence in news reporting and storytelling. As the Editor-in-Chief of Sele Media Africa, she ensures daily operations run smoothly while upholding the highest editorial standards. With a strong eye for detail and deep understanding of audience engagement, Marian coordinates content across platforms, guiding teams to produce compelling, timely, and credible news. Her leadership reflects the heart of Sele Media Africa’s mission—to inform, inspire, and elevate voices across the continent.

See author's posts