Mkpoikana Udoma

Port Harcourt — The Minister of State for Petroleum Resources, Heineken Lokpobiri, stated that current reforms in the oil industry are crucial for maintaining Nigeria’s financial health and monetary stability, cautioning that low oil income and continuous losses create strain on the naira and inflation.

At a panel discussion named “Fiscal and Monetary Outlook 2026–2030: Priorities and Imperatives” held at the National Economic Council, NEC, Conference inside the State House Banquet Hall, Lokpobiri highlighted oil as something beyond just an energy resource.

“Oil is more than just an energy resource for Nigeria; it serves as the foundation of our financial power and economic stability,” he stated.

When income is low or losses continue, deficits increase, debt grows, and strain intensifies on the naira and inflation.

Lokpobiri informed attendees that the Federal Government’s approach is centered on reviving production, preventing revenue losses, and establishing a more open, business-conducive environment.

“By fully executing the Petroleum Industry Act, enhancing security, conducting competitive bidding processes, and backing local refining efforts, we are drawing in investments, preserving foreign exchange, and creating more stable income,” he said.

He stated that increasing regulatory clarity under the Petroleum Industry Act, PIA, has boosted investor trust and increased predictability within the industry.

The minister highlighted that backing local refining is decreasing reliance on imported fuel and preserving foreign currency, a trend he mentioned has favorable effects on Nigeria’s foreign reserves and currency stability.

“These steps ensure that oil not only drives growth, but also supports budget stability, reserves, and the naira,” Lokpobiri added.

He highlighted that synchronizing oil sector reforms with overall fiscal and monetary cooperation would be essential from 2026 to 2030, especially as Nigeria aims to cut deficits, bolster reserves, and control inflation.