The Nigerian National Petroleum Company Limited (NNPC) has raised concerns over the prolonged delay in exploiting the country’s vast oil reserves, warning that crude left in the ground holds no economic value unless it is extracted and converted into revenue.
Speaking at the 50th Anniversary of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos, NNPC’s Group Chief Executive Officer, Bayo Ojulari, emphasised the urgent need to accelerate the development of Nigeria’s dormant oil blocks. Ojulari, represented by the Executive Vice-President, Upstream, Udobong Ntia, said Nigeria has “sat too long” on untapped resources, missing opportunities for economic growth and energy security.
“Our oil in the ground doesn’t matter to anybody. It has to convert to cash for the country to get the benefit we need,” Ojulari said. “We’ve had oil in the ground for so long—it’s time to strike deals that will bring it out.”
Industry data shows that about 220 oil blocks across Nigeria’s onshore and offshore basins remain dormant, with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirming plans to auction them in upcoming bid rounds. Energy analysts warn that delays in licensing and investment could cost Nigeria billions in potential earnings, especially as global energy transition policies accelerate.
Ojulari identified funding as a major obstacle to unlocking Nigeria’s oil potential. He stressed that attracting foreign capital requires creating an enabling environment with clear, profitable returns for investors.
“Investors want assurance that their money will bring returns. Without that certainty, capital will flow elsewhere,” he noted.
The NNPC boss also addressed the global debate on fossil fuels, climate change, and sustainability. He argued that African economies should pursue responsible oil production while adopting cleaner technologies, pointing out that developed nations built their wealth on fossil energy.
“It’s not a zero-sum game. We can grow our economies and protect the environment at the same time. The focus should be on sustainable, responsible production with the right values in place,” Ojulari said.
NAPE President Johnbosco Uche echoed NNPC’s concerns, stressing that Nigeria’s underdeveloped gas reserves—estimated at over 600 trillion cubic feet—represent a massive opportunity for industrialisation, energy security, and cleaner growth.
“Gas exploration must become intentional. We have partially appraised and unappraised reserves waiting to be developed,” Uche said.
He urged the government to provide fiscal and regulatory incentives to enable efficient oil and gas exploration. Uche also called for investments in digital transformation, machine learning, and artificial intelligence to boost exploration efficiency and data utilisation.
Highlighting an ageing workforce in Nigeria’s oil sector, Uche said the industry must focus on training and mentoring the next generation of petroleum engineers, geoscientists, and energy innovators.
“Every experienced professional was once a young graduate. We need structured internships, mentorship programmes, and Centres of Excellence for Petroleum Studies in both the North and South,” he added.
Industry experts note that Nigeria’s oil reserves, estimated at over 37 billion barrels, remain one of the largest in Africa. However, the push for renewable energy globally is forcing oil-producing countries to speed up exploitation before demand plateaus. The International Energy Agency (IEA) has warned that the window for high-profit oil exports could narrow within the next two decades as cleaner energy gains dominance.
Meanwhile, global investment in fossil fuels is rebounding, with $800 billion channelled into the sector in 2024 alone, indicating that oil remains a key part of the global energy mix for now.
Both NNPC and NAPE agree that Nigeria’s oil and gas industry requires:
Fast-tracked licensing of dormant oil blocks.
Investor-friendly fiscal and regulatory policies.
Sustainable and responsible exploration strategies.
Heavy investment in gas as a transition fuel.
Human capital development and technological innovation.
For Nigeria, the choice is clear—turn its buried wealth into tangible economic benefits now or risk leaving it stranded in a world that is quickly moving beyond oil.