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Minister worries National Assembly summons distract oil firms from core work

Minister worries National Assembly summons distract oil firms from core work

By Yunus Yusuf

Minister of State for Petroleum (Oil), Heineken Lokpobiri, has expressed concern over the frequent summons issued by the National Assembly to international oil companies (IOCs) and indigenous operators, specifically the Independent Petroleum Producers Group (IPPG).

He said that these summons often address issues beyond the companies’ primary operational responsibilities, diverting their focus and potentially hindering their core activities.

Speaking during the Petroleum Technology Association of Nigeria (PETAN) Luncheon at the Offshore Technology Conference (OTC) on Wednesday in Houston, Texas, U.S., the minister described the practice as unnecessary and counterproductive.

Lokpobiri expressed concern that frequent and irrelevant summonses were discouraging investment in Nigeria’s oil and gas sector.

“One of the biggest disincentives to investment in this industry is the excessive number of summons issued by the National Assembly, often over issues that do not concern the companies,” he said.

He appealed to lawmakers to collaborate with stakeholders to foster a more investment-friendly environment.

“We urge the National Assembly to work with us to change this narrative.

“These companies are being summoned by committees, such as procurement, which have no direct connection to the oil and gas industry.

“Some of these inquiries even relate to events that occurred over 30 years ago,” he said.

The minister warned that, in today’s competitive global oil landscape, Nigeria can no longer afford practices that drive away investors.

“Other African countries now offer viable alternatives. When IOCs leave Nigeria, they invest elsewhere on the continent.

“If investments don’t happen here, our people lose. Our economy suffers.

“Why are companies like Total, Chevron, and Shell being summoned for procurement issues that do not concern them? These actions have not led to any tangible improvements in the sector,” the minister said.

 

In his remarks, Mr Wole Ogunsanya, Chairman of PETAN, PETAN advocated for african collaboration on local content.

Ogunsanya emphasised the significance of Nigeria’s Local Content Law, which he described as a game-changer for indigenous participation in the oil and gas industry.

“The Local Content Law enabled many Nigerian companies to engage across the value chain, from upstream to downstream.

“It removed entry barriers and allowed local firms to gain the experience and capacity to compete effectively,” Ogunsanya noted.

Acording to him, Nigeria’s approach is now being adopted across Africa.

“Countries like Angola have developed similar frameworks. In February, stakeholders across the continent agreed to establish the African Content Organisation.

“The goal is to share knowledge, equipment, and training to address Africa’s energy poverty.

“The African Content Organisation, he said, will be officially launched at the African Union headquarters in Ethiopia next year.

“This initiative aims to empower indigenous companies, create jobs, and grow Africa’s GDP. Ultimately, it’s about improving lives across the continent,” he said.

Ogunsanya, while explaining the importance of energy access, said that “Countries with high energy consumption enjoy better health, cleaner environments, and longer life expectancy.

“Increasing per capita energy consumption in Africa is critical to improving education, healthcare, and overall quality of life.

“We must come together as a continent to solve our own energy challenges,” he added.

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