Mkpoikana Udoma
Port Harcourt — The Minister of State for Petroleum Resources, Heineken Lokpobiri, has said that ongoing oil sector reforms are central to safeguarding Nigeria’s fiscal strength and monetary stability, warning that weak oil revenues and persistent leakages place pressure on the naira and inflation.
Speaking at a panel session titled “Fiscal and Monetary Outlook 2026–2030: Priorities and Imperatives” during the National Economic Council, NEC, Conference at the State House Banquet Hall, Lokpobiri described oil as more than just an energy asset.
“Oil is not just an energy asset for Nigeria; it is the anchor of our fiscal strength and monetary stability,” he said.
“When revenues are weak or leakages persist, deficits grow, borrowing rises, and pressure mounts on the naira and inflation.”
Lokpobiri told participants that the Federal Government’s strategy focuses on restoring production levels, blocking revenue leakages and creating a more transparent, investment-friendly operating environment.
“Through full implementation of the Petroleum Industry Act, improved security, competitive bid rounds, and support for domestic refining, we are attracting investment, conserving foreign exchange, and generating more reliable revenues,” he stated.
According to him, strengthening regulatory certainty under the Petroleum Industry Act, PIA, has improved investor confidence and enhanced predictability in the sector.
The minister noted that support for domestic refining is reducing dependence on fuel imports and conserving foreign exchange, a development he said has positive implications for Nigeria’s external reserves and exchange rate stability.
“These steps ensure oil not only fuels growth, but also stabilises budgets, reserves, and the naira,” Lokpobiri added.
He emphasised that aligning oil sector reforms with broader fiscal and monetary coordination would be critical between 2026 and 2030, particularly as Nigeria seeks to reduce deficits, strengthen reserves and tame inflationary pressures.
