The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has identified a lack of exploration activities as the primary reason behind Nigeria’s stagnant oil reserves. During a courtesy visit by Kogi State Governor Usman Ododo to his office on Thursday, the minister highlighted that Nigeria’s oil reserves, currently estimated at 37 billion barrels, have not increased in recent years due to insufficient exploration efforts.
“For the past few years, Nigeria hasn’t actually done much in terms of exploration, and that’s why our reserves are not growing,” Lokpobiri stated. “Our reserves should be twice their current size, but because little exploration has taken place over the past 12 years, we haven’t been able to update our figures.”
Lokpobiri emphasised that maximising the country’s oil and gas resources is crucial for addressing its current economic challenges, particularly as the world shifts towards renewable energy and moves away from fossil fuels. He stressed the importance of increasing oil production, noting that Nigeria had previously produced around 2.4 million barrels per day before the COVID-19 pandemic, a level that could be achieved again with the right investments and by addressing security concerns.
The minister expressed optimism about partnering with Kogi State through the Frontier Exploration Fund to kickstart exploration efforts in untapped areas. “The easiest way to address Nigeria’s economic problems is through the oil and gas sector. We have these resources in abundance, including in Kogi State,” Lokpobiri said, underscoring the need for strategic investments to extract and commercialise the country’s resources.
Kogi State Governor Usman Ododo, in his remarks, sought the ministry’s support in unlocking the state’s vast natural resources, which he said had remained largely untapped. He also pointed out that despite the discovery of crude oil in Kogi, the state has yet to benefit from the 13% derivation and other entitlements enjoyed by other oil-producing states. As the convergence point for the Ajaokuta-Kaduna-Kano (AKK) gas pipeline, Kogi stands to become a major hub for oil and gas investments.
This dialogue between the federal government and Kogi State signals a renewed focus on exploration, a critical step for Nigeria to boost its oil reserves and overcome its economic hurdles.