Nigeria’s fragile oil and gas sector is once again mired in controversy as multiple industry insiders accuse Heineken Lokpobiri, the minister of state for petroleum resources, of illegally demanding bribes from companies and stalling approvals for the extension of Petroleum Prospecting Licences.
According to PG report, five separate sources in the petroleum sector confirmed that the minister had been holding up statutory processes since June.
Three of the sources provided direct testimony, while two others corroborated the claims, all on the condition of anonymity for fear of reprisals.
According to the Petroleum Industry Act, oversight of such approval lies solely with the Nigerian Upstream Petroleum Regulatory Commission, headed by Gbenga Komolafe. However, sources said Mr Lokpobiri had inserted himself into the process, subjecting indigenous oil firms, many of which are still reeling from debt obligations, to a fresh round of scrutiny.
“The minister has been asking us to ‘settle him’ before anything moves,” one concessionaire said. “It’s a straightforward case of pay to play. He doesn’t have the statutory powers, but he is using his office to frustrate companies until they comply.”
Another operator described the situation as “blackmail”.
He said, “The NUPRC had already done its review of our licences as required by law. But instead of getting an extension, the minister has created an illegal bottleneck. He has no such powers under the PIA. What we are experiencing is not regulation—it’s extortion.”
A third source revealed that the delayed approval “is killing investment”.
The source said, “Contractors are waiting, banks are threatening to recall loans, and production is being stalled. Meanwhile, the minister is turning approvals into a bazaar. It is embarrassing for the industry and dangerous for the economy.”
Two other industry insiders, while refusing to be quoted directly, corroborated the accounts, saying the minister’s “second round of scrutiny” has no legal basis and has thrown the sector into uncertainty.
One of them noted that President Bola Tinubu, who doubles as the substantive minister of petroleum, risks undermining his own stated goal of boosting crude production if the matter is not resolved swiftly.
Findings by the publication showed that the NUPRC had already conducted performance reviews in line with the minimum work programme stipulated in the PIA before forwarding recommendations for extensions. But weeks later, no extension has been granted. Instead, asset owners and investors remain trapped in limbo.
The fallout has been severe. Indigenous companies, which hold all the affected PPLs, are now under immense pressure from investors and lenders. Contract executions have been delayed, bank interests are accruing, and service providers are left unpaid.
“The office of the minister of state for petroleum is indirectly weakening investors’ confidence in local oil and gas companies,” one concessionaire said.
“This is not the vision of the PIA, and certainly not what the president promised.”
Mr Lokpobiri did not immediately reply to a request for comment.
PG report
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