Onome Amuge
Nigeria, Africa’s largest oil producer, currently holds not less than 220 unawarded oil blocks across its onshore and offshore basins, according to recent data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This untapped energy potential contrasts sharply with the nation’s escalating debt burden and chronic crude shortages plaguing its local refineries.
The NUPRC data reveals that the deep offshore terrain accounts for the highest number of unlicensed blocks, with 59 untouched areas. This region, while technologically advanced and capital-intensive, represents Nigeria’s most underexplored energy frontier, holding enormous hydrocarbon resources.
Despite these challenges, the NUPRC points to successful exploration, development, and production in Nigeria’s deepwater terrain, citing prolific fields such as NNPC Exploration and Production Limited’s Abo, Chevron Nigeria Limited’s Agbami, TotalEnergies Upstream Nigeria Limited’s Akpo and Egina, and Shell Nigeria Exploration and Production Company’s Bonga, among others. These successes underscore the richness of the deep offshore resources, making it, in the NUPRC’s words, “the new bride of international oil companies in the wave of current portfolio rationalisation and divestment programmes.”
As of January 1, 2025, the deepwater terrain contributed 19 per cent of Nigeria’s oil reserves and 12 per cent of its gas reserves, indicating future potential if these unawarded blocks are unlocked.
Beyond the deep offshore, unlicensed blocks are scattered across various other basins:
- The Benue Trough holds 41 open blocks.
- The Chad Basin hosts 40 unawarded blocks.
- The Sokoto Basin has 28 blocks awaiting award.
- The Bida Basin contains 16 open blocks.
Even in more mature and historically prolific areas, idle blocks persist. The offshore Niger Delta, traditionally the bedrock of Nigeria’s oil production, still has seven open blocks. The Anambra Basin accounts for 13 open blocks, while eight each remain unlicensed in the Benin Basin and the onshore Niger Delta.
The NUPRC also noted recent activity, stating that 24 blocks were awarded from the 2022/2023 deepwater mini bid round and the 2024 licensing round, indicating some movement in securing investment. However, a vast acreage, as depicted on NUPRC maps, stretches across Nigeria’s maritime boundary, with much of it remaining untouched.
Industry analysts lament that the existence of such extensive unlicensed and undeveloped oil wealth points to a serious mismatch between Nigeria’s potential and its actual production performance, particularly given its growing debt profile. As a country heavily dependent on oil revenues, the failure to monetise these blocks directly impacts national income, forcing the country to resort to increased borrowing.
Nigeria’s total public debt rose to N149.39 trillion as of March 31, 2025, according to a report by the Debt Management Office (DMO). This marks a year-on-year increase of N27.72 trillion, or 22.8 per cent, compared to N121.67 trillion recorded in the corresponding period of 2024. The persistent rise in debt stock is attributed to new borrowings by the federal government and the depreciation of the Naira, which has inflated the local currency value of external loans. This increase has occurred against a backdrop of persistent fiscal pressures and a continued reliance on both domestic and foreign borrowing to fund public expenditure.
Simultaneously, Nigeria continues its heavy dependence on imports to meet refined petroleum needs, even as its own refineries suffer from chronic crude shortages, further exacerbating the economic strain.
