Reciprocate Tax Incentives with Oil Output Surge, Lokpobiri Urges IOCs

The federal government has urged International Oil Companies (IOCs) operating locally to make use of the offered tax breaks and reforms to boost the oil and gas industry’s growth.

The minister of state for Petroleum Resources (Oil), Senator Heineken Lokpobiri, issued this appeal during a panel discussion titled “Capitalising Africa’s Global Upstream Momentum” at the recently wrapped-up 9th Nigeria International Energy Summit in Abuja.

Despite IOCs raising output from roughly 1.3 million barrels per day (bpd) to about 1.7 million bpd under the current administration, Lokpobiri stressed that far greater contributions are expected.

He remarked: “The government has provided extensive incentives to tap the sector’s potential. So, what will you do in return?

We’ve delivered reforms and tax breaks—numerous perks, in fact. Now it’s your turn to respond to these efforts. You’ve asked for a lot, and we’ve often met those demands, leaving little for us.”

Highlighting the industry’s vital role—“oil and gas make up over 90 per cent of our exports, making this sector essential to the economy”—the minister promised ongoing backing. “We’re fully committed to providing the support needed to expand this sector,” Lokpobiri affirmed.He emphasised a shift from past practices, restoring investor trust and drawing fresh capital. On local content policies, he explained they aim to build domestic skills alongside IOCs and Engineering, Procurement, and Construction (EPC) firms, not replace them.

Lokpobiri reaffirmed the drive for reforms to benefit the sector and all Nigerians, adding:

“We’ll keep pushing these changes for the industry’s success, which will spread across Africa. Nigeria’s upstream struggles would impact the continent, especially midstream and downstream segments.”

In earlier comments, IOC representatives committed to partnering with local firms to advance the industry.

Panelists included TotalEnergies E&P MD Matthieu Bouyer, Seplat Energy CEO Roger Brown, Chevron Nigeria Chairman/MD Jim Swartz, ExxonMobil Nigeria Affiliates Chairman/MD Jagir Baxi, Renaissance Africa Energy MD/CEO Tony Attah, ND Western MD Lanre Kalejaiye, NNPC Upstream EVP Udobong Nta, and Oando Energy Resources MD Ainojie Alex Irune.