Over 3.5 billion barrels of oil and condensate remain locked in undeveloped fields across Nigeria’s basins, according to a recent report by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
At an average crude price of $65 per barrel, these reserves are valued at about $227.5 billion (₦341.25 trillion at ₦1,500/$). This figure is more than six times Nigeria’s 2025 budget of ₦54.9 trillion. To put it in perspective, the amount could build over two million primary health centres at ₦150m each, five million classroom blocks at ₦65m each, or 413,000 kilometres of roads at ₦825m per kilometre.
Rising Debt, Shrinking Revenues
Despite these dormant resources, Nigeria’s 2025 budget carries a ₦13.08 trillion deficit, to be financed by domestic and external borrowing. Expenditure allocations include:
- ₦13.64tn for recurrent spending,
- ₦23.96tn for capital projects,
- ₦14.32tn for debt servicing, and
- ₦3.65tn for statutory transfers.
The Debt Management Office reported that the nation’s public debt climbed to ₦149.39 trillion as of March 31, 2025, a 22.8% year-on-year increase from ₦121.67 trillion in 2024. Analysts attribute the debt surge to fresh borrowings and naira depreciation, which has inflated the local value of external loans. Compounding the problem, Nigeria still depends on imports for refined petroleum despite being Africa’s top oil producer.
Locked Resources in Deepwater Fields
The NUPRC revealed that as of January 2025, Nigeria’s total oil and gas reserves stood at 37.28 billion barrels of crude and 210.54 trillion cubic feet of gas. However, vast quantities remain untapped:
- 3.5 billion barrels of oil/condensate and 18.8 TCF of gas lie in undeveloped fields.
- Only 12.25% of deepwater oil and gas fields are fully developed.
- 31.65% remain undeveloped, the single largest category.
- 5.10% are in the pipeline for development.
In deep offshore terrain specifically, 25% of reserves are developed, 23% are “in view,” while more than half (52%) remain idle.
220 Unlicensed Oil Blocks Still Dormant
NUPRC data shows that 220 oil blocks remain unlicensed nationwide. The largest share lies in the deep offshore terrain (59 blocks), followed by the Benue Trough (41), Chad Basin (40), Sokoto Basin (28), and Bida Basin (16). Even mature zones like the onshore and offshore Niger Delta host idle blocks.
The commission clarified that these blocks are not abandoned but awaiting periodic licensing rounds in line with the Petroleum Industry Act (PIA) 2021, which empowers it to issue Petroleum Prospecting Licences and Mining Leases.
Industry Leaders Call for Urgency
At the 50th anniversary of the Nigerian Association of Petroleum Explorationists (NAPE), the Group CEO of NNPC Limited, Bayo Ojulari, stressed that crude oil in the ground is of no economic value until extracted.
“Our oil in the ground doesn’t matter to anybody. It has to convert to cash for the country to get the benefit. We’ve had oil in the ground for too long. It’s time to strike deals that will bring it out,” he said, through his representative, Udobong Ntia.
NAPE President Johnbosco Uche urged the regulator to hold annual bid rounds to attract investors and grow reserves to 40 billion barrels. He said Nigeria still ranks among the world’s most prolific basins but requires better seismic data and the right technology to unlock reserves, as the “days of easy oil are gone.”
Government’s Position
In April, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, warned that undeveloped oil blocks risk being withdrawn from idle owners. He said operators who fail to utilise assets for decades should be ready to forfeit them.
“We cannot continue to have assets sitting idle for 20 to 30 years without development. If you are not utilising an asset, it neither adds value to your books nor to us as a country,” Lokpobiri stated.
He urged oil companies to adopt collaborative approaches such as farm-outs and shared resource development for contiguous assets, or risk forfeiting them to investors willing to produce.
Bottom Line
Nigeria’s heavy debt burden contrasts sharply with its dormant energy wealth. With trillions of naira in potential revenue trapped in undeveloped oil and gas fields, stakeholders warn that urgent reforms, licensing rounds, and investment-friendly policies are needed to turn reserves into production — and cash.
