Nigeria is sitting on crude oil reserves valued at a staggering N341 trillion, locked away in undeveloped fields across the country’s oil basins, according to a new report by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The report revealed that more than 3.5 billion barrels of oil and condensate reserves remain idle, even as the country grapples with a mounting debt profile and chronic budget deficits.
At an average benchmark of $65 per barrel, the reserves are worth $227.5 billion, a figure that dwarfs the nation’s 2025 budget of N54.9 trillion by more than 600 per cent.
Analysts note that this untapped wealth could transform Nigeria’s fiscal landscape.
For instance, the value of the dormant oil reserves could fund the construction of over two million primary healthcare centres, five million classroom blocks, or more than 400,000 kilometres of modern roads, according to government budget estimates.
Nigeria’s 2025 budget deficit stands at N13.08 trillion, with heavy allocations to debt servicing (N14.32tn), recurrent expenditure (N13.64tn), and capital projects (N23.96tn).
To cover this gap, the country has leaned on both domestic and external borrowing.
Data from the Debt Management Office (DMO) shows that Nigeria’s public debt rose to N149.39 trillion as of March 2025, a sharp increase from N121.67 trillion in the same period of 2024.
Experts attribute this rise not only to fresh borrowings but also to the sharp depreciation of the naira, which inflates the local currency value of foreign loans.
Observers warn that Nigeria’s reliance on borrowing while huge energy reserves remain untapped represents a critical paradox in the nation’s economic strategy.
The NUPRC report also disclosed that about 18.8 trillion cubic feet (TCF) of associated and non-associated gas reserves remain undeveloped.
A breakdown shows that 31.65 per cent of oil and gas fields in the country are yet to be developed, while only 12.25 per cent are fully operational.
In the deep offshore terrain, where the bulk of reserves lie, 52 per cent of discovered oil fields remain undeveloped, while just 25 per cent are tagged as “development in view.”
This imbalance underscores Nigeria’s difficulty in moving from exploration to production despite having abundant resources.
At the 50th anniversary of the Nigerian Association of Petroleum Explorationists (NAPE), the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, stressed the urgency of converting reserves into revenue. Represented by Executive Vice-President, Upstream, Udobong Ntia, Ojulari warned:
“Our oil in the ground doesn’t matter to anybody. It has to convert to cash for the country to benefit. We’ve had oil in the ground for so long; it’s time to bring it out.”
NAPE President, Johnbosco Uche, emphasized the need for annual licensing bid rounds to attract investors, boost production, and raise Nigeria’s oil reserves to 40 billion barrels.
He highlighted the Niger Delta as one of the most prolific basins globally but cautioned that investors require accurate data, improved seismic technology, and stability under the Petroleum Industry Act (PIA) to commit fresh capital.
The NUPRC confirmed that 220 oil blocks remain dormant across Nigeria, including 59 in the deep offshore, 41 in the Benue Trough, and 40 in the Chad Basin.
The Commission clarified that the blocks are not abandoned but are awaiting concessions in line with the PIA 2021.
However, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, recently warned that the government may revoke licences of idle oil block owners, stressing that assets cannot remain unproductive for decades.
He urged companies to consider farm-outs, shared resources, and joint development as ways to unlock the reserves.
Energy experts argue that Nigeria’s inability to develop its oil and gas reserves is not just an economic issue but a matter of national security.
With oil accounting for more than 80 per cent of foreign exchange earnings, delays in field development continue to weaken the naira, deepen fiscal deficits, and limit infrastructural growth.
If urgent measures are not taken to unlock the estimated N341tn wealth beneath Nigeria’s soil, the country risks worsening its debt crisis while missing out on opportunities to transform its economy and infrastructure.