Amid worsening fiscal challenges and energy insecurity, new data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reveals that 220 oil blocks across Nigeria remain abandoned and unlicensed, exacerbating the nation’s inability to meet domestic refining needs and crude export obligations.
The commission’s report highlights that deep offshore territories hold the largest number of idle blocks, with 59 unlicensed units. Other significant figures include 41 blocks in the Benue Trough, 40 in the Chad Basin, 28 in the Sokoto Basin, and 16 in the Bida Basin. Even mature areas such as the onshore and offshore Niger Delta have unutilized assets.
Despite their complexity, Nigeria’s deepwater zones are among the most resource-rich. The NUPRC notes that this terrain, while difficult to access and costly to develop, has yielded significant commercial discoveries including Bonga, Agbami, Egina, Akpo, and Abo fields.
Yet, 59 of these offshore blocks remain untouched. As of January 2025, deepwater contributed 19% of Nigeria’s oil reserves and 12% of its gas reserves, underlining the stark contrast between potential and performance.
“These blocks represent significant untapped hydrocarbon reserves,” the report states, noting that nearly 27% of total open blocks nationwide are in deep offshore locations.
Nigeria’s failure to license or develop these oil blocks is not just a matter of missed opportunity—it has direct fiscal consequences. According to the Debt Management Office, Nigeria’s public debt soared to N149.39 trillion by Q1 2025, up from N121.67 trillion in 2024.
The widening deficit is compounded by the country’s reliance on imported petroleum products. Even landmark facilities like the Dangote Refinery have resorted to importing feedstock, sourcing as much as 10 million barrels from the U.S. in July alone.
Despite efforts by the NUPRC to launch licensing rounds—such as the 2022/2023 deepwater mini bid and the delayed 2025 round—investor caution remains high. The complex regulatory landscape, infrastructure deficits, and geopolitical uncertainties have deterred many potential operators.
In April, Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), warned that the government would revoke licenses from operators hoarding undeveloped assets.
“We cannot continue to allow assets to lie dormant for decades. If you are not ready to develop them, we will reassign them to investors who are,” he stated.
The NUPRC has proposed a cluster or nodal development model aimed at aggregating smaller assets for joint development to reduce costs and risks. Industry players are also encouraged to pursue farm-out agreements and shared infrastructure to unlock stranded resources.
Additionally, the commission is urging International Oil Companies (IOCs) to ramp up support for local refining by prioritizing domestic crude allocation.