FG Reviews Oil Field Licensing, Moves to Halt Pipeline Vandalism
July 2, 2025. Abuja, Nigeria.OVL News
In a decisive move to revamp Nigeria’s petroleum sector, the Federal Government has announced a comprehensive review of oil field licensing processes, aimed at fostering transparency, enhancing investment inflows, and boosting national revenue.
Simultaneously, it has launched a coordinated effort to tackle the persistent menace of pipeline vandalism, which has significantly affected crude oil production and national income.
The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, disclosed this during a press briefing in Abuja on Tuesday.
He emphasized that the review is part of President Bola Tinubu’s broader economic reform agenda and is expected to sanitize the upstream oil sector.
“We are embarking on a complete overhaul of oil field licensing. All licenses are now under review to ensure that only competent and credible operators are allowed to manage our oil assets,” Lokpobiri stated.
The review is set to scrutinize both existing licenses and pending applications, with a focus on compliance with environmental standards, operational capacity, and financial responsibility.
According to the minister, companies found to be hoarding licenses without meaningful development will face revocation.
The government also disclosed that it has stepped up efforts to halt pipeline vandalism, a major challenge that has undermined Nigeria’s oil output and security.
In collaboration with security agencies, oil-producing communities, and private surveillance contractors, new strategies have been deployed across the Niger Delta region.
“Pipeline vandalism is economic sabotage. We are deploying smart surveillance technologies, strengthening community engagement, and ensuring offenders are prosecuted under the full weight of the law,” Lokpobiri said.
Security experts and stakeholders in the oil and gas sector have welcomed the move, calling it long overdue.
Industry analyst Nnenna Okoro praised the initiative, saying, “A transparent licensing process will attract more serious investors. Coupled with anti-vandalism actions, this could signal a new dawn for Nigeria’s oil economy.”
The renewed policies are expected to increase production output, reduce oil theft, and improve the government’s revenue generation capacity, especially at a time when Nigeria is grappling with foreign exchange challenges and inflationary pressures.
According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the country currently loses over 100,000 barrels of oil daily to theft and vandalism, a loss amounting to billions of naira monthly.
The government has pledged to monitor implementation closely and hold public updates on progress.
Stakeholders are optimistic that with sustained commitment, the dual policy shift will restore investor confidence and secure Nigeria’s place as a leading oil producer in Africa.
OVL News
