Business

220 oil blocks abandoned amid debt, crude crises

Published

3 months ago

August 4, 2025

Nigeria currently has 220 open oil blocks scattered across its onshore and offshore basins, data from the Nigerian Upstream Petroleum Regulatory Commission has revealed.

This is despite its growing debt burden and crude shortages affecting local refineries. The NUPRC data showed that the deep offshore terrain accounts for the highest number of unlicensed blocks at 59, highlighting the country’s underexploited energy wealth in its most technically advanced but capital-intensive region.

The Benue Trough follows with 41 open blocks, while the Chad Basin hosts 40. In the Sokoto Basin, there are 28 blocks yet to be awarded, and the Bida Basin has 16. It was disclosed that even in more mature areas, idle blocks persist.

The offshore Niger Delta, often considered the backbone of Nigeria’s oil production history, still holds seven open blocks. The Anambra Basin has 13 open blocks, while eight each remain unlicensed in the Benin Basin and the onshore Niger Delta.

According to a publication by the NUPRC, 24 blocks were recently awarded from the 2022/2023 deepwater mini bid round and the 2024 licensing round. On the strength of the recorded successes in exploration, development, and production, the commission said it is evident that the Nigerian deepwater terrain is endowed with enormous hydrocarbon resources.

“A testament to the richness of its resources is commercial discoveries and prolific historical productions of the NNPC Exploration and Production Limited’s Abo field, Chevron Nigeria Limited’s Agbami Field, Yinka Folawiyo’s Aje field, TotalEnergies Upstream Nigeria Limited’s Akpo and Egina fields, Shell Nigeria Exploration and Production Company’s Bonga field, and ESSO Exploration and Production Usan and Erha fields, among others,” the report said.

While saying Nigeria’s deepwater terrain has become the new bride of international oil companies in the wave of current portfolio rationalisation and divestment programmes, it was stated that the deep offshore terrain is largely underexplored due to its complexity.

“Characteristically, the deep offshore terrain presents complexity in accessibility, technology, investment, and facility deployment, which potentially explains its status as largely underexplored and underdeveloped.

“Empirical data indicates that there are about 59 open block opportunities in deep offshore Nigeria, which accounts for about 27 per cent of total open blocks in Nigeria and 80 per cent of open blocks in the prolific Niger Delta and its offshore terrains,” it stated.

As of January 1, 2025, the deepwater terrain reportedly contributed approximately 19 per cent and 12 per cent of oil and gas reserves in Nigeria, respectively. Industry analysts said these figures point to a serious mismatch between Nigeria’s potential and its actual production performance, its unlocked wealth, and the debt profile.

As a country with high dependence on oil revenues, unlicensed and undeveloped oil blocks impact incomes, causing the country to resort to borrowing. It was learnt that the government’s debt stock hit over N149tn in Q1 2025, and the country continues to depend heavily on imports to meet refined petroleum needs, even as its own refineries suffer from chronic crude shortages.

According to a report by the Debt Management Office, Nigeria’s total public debt rose to N149.39tn as of March 31, 2025, marking a year-on-year increase of N27.72tn or 22.8 per cent compared to the N121.67tn 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 inflated the local currency value of external loans. It was reported that the surge was against a backdrop of persistent fiscal pressures and continued reliance on both domestic and foreign borrowing to fund public expenditure.

A map published by NUPRC revealed vast acreage stretching across Nigeria’s maritime boundary, with most of it untouched. While landmark projects like Bonga, Agbami, Egina, and Akpo represent success stories in offshore development, they are exceptions in a terrain still dominated by unlicensed and undeveloped blocks.

Meanwhile, the commission is planning to push for a cluster or nodal development model to unlock smaller accumulations and cut costs. The commission announced last year that there would be a licensing bid round in 2025, but that has yet to commence as of the time of filing this report.

Aside from the 220 open blocks, the country also has a sizeable number of licensed oil and gas assets that are undeveloped. Over three billion barrels of oil are locked in these undeveloped fields, according to the NUPRC.

In April, the Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri, threatened to withdraw oil blocks from owners that have failed to develop them.

Lokpobiri also called on international oil companies operating in Nigeria to ramp up investment in the country’s oil and gas sector, emphasising that the current administration has provided every necessary incentive to ensure seamless and profitable operations.

“We cannot continue to have assets sitting idle for 20 to 30 years without development. If you are not utilising an asset and it remains underdeveloped for decades, it neither adds value to your books nor to us as a country. We encourage industry players to explore collaborative measures such as shared resources for contiguous assets, farm-outs, and the release of underutilised assets to operators ready to invest in production. Otherwise, like any responsible government, we will take back these assets and allocate them to those willing to go to work,” the oil minister said.

He emphasised the need for IOCs to support local refining efforts, noting that more refineries are coming upstream and will require a steady supply of crude oil. To make this easy and possible, he stressed that ramping up production will enable Nigeria to meet both local and international obligations.

The Dangote refinery said it depends on the United States to get enough feedstock, importing up to 10 million barrels in July.

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Business

NNPC can increase stake in Dangote refinery — Aliko

Published

6 hours ago

October 25, 2025

Newsbreak365_Admin

The President of the Dangote Group, Alhaji Aliko Dangote, has said the Nigerian National Petroleum Company Limited has the opportunity to increase its 7.2 per cent stake in the Dangote refinery.

However, Dangote said this would happen after he must have proven to the state-owned company what the refinery can do.

Dangote stated this in a recent interview with S&P Global Commodity Insights.

“The door remains open for Nigerian National Petroleum Co. to boost its stake after the state oil company trimmed its interest to 7.2 per cent, but not before its next phase of growth is well underway.

“I want to demonstrate what this refinery can do, then we can sit down and talk,” Dangote was quoted as saying.

A close aide of Dangote was also reported to have said that the company would exert caution before inviting additional participation from NNPC.

Within the next year, he noted that the refining business will list 5–10 per cent of its shares on the Nigerian stock exchange.

“We don’t want to keep more than 65-70 per cent,” Dangote said, explaining that shares will be offered incrementally subject to investor appetite and market depth.

The NNPC had reduced its stake in the Dangote refinery from 20 per cent to 7.2 per cent.

The former spokesperson of the Nigerian National Petroleum Company Limited, Olufemi Soneye, disclosed last year that the state-owned energy firm reduced its stake in the Dangote refinery to invest in compressed natural gas.

Soneye revealed that the NNPC capped its stake at 7.2 per cent instead of 20 per cent to build CNG stations across the nation.

He stated this while featuring on Berekete Family Radio, a video of which was sighted by our correspondent.

He mentioned that the NNPC realised that CNG was more affordable as a better energy alternative for Nigerians, especially during the period of energy transition.

He added that Nigerians could fuel their vehicles with N10,000 when using CNG, compared to petrol.

“The reason for reducing our stake in the Dangote refinery is because we wanted to invest in CNG. We observed that CNG is very cheap, and all over the world, people are investing in clean and cheaper alternative energy.

“That is why the NNPC is building different CNG stations everywhere. We understand that with N10,000, Nigerians can fill their cars and use it for two weeks. We realised that gas is cheaper in Nigeria; why don’t we invest in it?” the former NNPC spokesman said in August 2024.

The new Group Chief Executive Officer of the NNPC, Bayo Ojulari, had recently told Argus Media that NNPC remains committed to increasing its stake in the 650,000-barrel-per-day Dangote refinery.

Many Nigerians were surprised to hear from Dangote in 2024 the the NNPC had trimmed its investment in the refinery to a paltry 7.2 per cent.

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Business

Customs seize N4.3bn drugs in Tin Can

Published

7 hours ago

October 25, 2025

Newsbreak365_Admin

The Nigeria Customs Service, Tin Can Island Command, has intercepted two containers of vehicles used to conceal illicit drugs worth over ₦5.3 billion.

The Customs Area Controller, Comptroller Frank Onyeka, confirmed the seizures in a statement issued in Lagos on Friday.

Onyeka said the operation reflected the command’s commitment to intelligence-led border enforcement and trade compliance.

He explained that the first container, numbered HLXU8500072, originated from Montreal, Canada, and was intercepted on Sept. 4 after intelligence analysis.

A joint physical examination uncovered 156 packets of Colorado Indica weighing 78 kilograms and 1.2 kilograms of Hashish Oil hidden inside four imported vehicles.

The second container, numbered FANU312876/9, was seized on Friday, Oct. 24, following actionable intelligence received by the command.

It contained 2,081 packages of Cannabis Indica weighing 1,093 kilograms and eight packages of Crystal Methamphetamine weighing eight kilograms, concealed in four vehicles.

The total value of the seized drugs was estimated at ₦5.304 billion, according to customs valuation reports.

Onyeka said the narcotics had been handed over to the National Drug Law Enforcement Agency for investigation and prosecution.

He commended the NDLEA, Navy, Police, and other agencies for their cooperation in the operation.

The controller stressed that the command would remain vigilant and uncompromising in enforcing Nigeria’s laws and trade conventions.

He urged importers and exporters to comply fully with customs regulations and ensure truthful documentation.

Onyeka thanked the Comptroller General of Customs, Bashir Adeniyi, for his support and appreciated the media’s role in public sensitisation.

Receiving the items, Commander of Narcotics, NDLEA Tin Can Strategic Command, Daniel Onyishi, praised Customs for its vigilance and professionalism.

Onyishi said the operation reflected a strong spirit of inter-agency collaboration against drug trafficking.

He assured all that the NDLEA would conduct a thorough investigation and ensure the legal disposal of the seized substances.

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Business

Nigeria exits global money-laundering watchlist

Published

8 hours ago

October 25, 2025

Newsbreak365_Admin

President Bola Tinubu has described Nigeria’s removal from the Financial Action Task Force “grey list” as a strategic victory for the nation’s economy and financial governance.

The FATF, the global watchdog on money laundering and terrorist financing, announced Nigeria’s delisting at its October 2025 Plenary in Paris, France, on Friday.

This followed the country’s full implementation of a 19-point action plan aimed at strengthening its Anti-Money Laundering and Countering the Financing of Terrorism framework.

In a statement issued by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu said the development was “not just a technical accomplishment but a strategic victory for our economy and a renewed vote of confidence in Nigeria’s financial governance.”

Nigeria was placed on the grey list in February 2023 over weak enforcement, poor inter-agency coordination, and opaque financial practices.

The President said his administration treated the designation as a call to action rather than a setback as he directed key agencies to implement sweeping reforms.

Under his directive, the Nigerian Financial Intelligence Unit, in collaboration with the Offices of the Attorney-General, and the Ministers of Finance, Justice, and Interior, coordinated comprehensive legal, institutional, and operational reforms to meet FATF standards.

Tinubu praised the Director and Chief Executive Officer of the NFIU, Hafsat Bakari, and her team for their “diligent and timely implementation” of Nigeria’s commitments, earning international recognition for tackling serious financial crimes.

Bakari, who led the reform process, confirmed Nigeria’s delisting in a statement, describing it as “a true test of the country’s resilience, coordination, and unwavering commitment to reform.”

She said, “The FATF has officially removed Nigeria from the list of jurisdictions under increased monitoring, commonly known as the grey list. This milestone marks a historic moment in Nigeria’s fight against serious financial crimes and underscores our commitment to global standards in combating money laundering, terrorist financing, and proliferation financing.”

According to her, key reforms that led to the delisting include the enactment and enforcement of the Money Laundering (Prevention and Prohibition) Act, 2022, and the Terrorism (Prevention and Prohibition) Act, 2022; the operationalisation of the Beneficial Ownership Register; and stronger supervision of designated non-financial businesses and professions.

Bakari noted that Nigeria had also enhanced the capacity of its intelligence and law enforcement agencies to detect, investigate, and prosecute financial crimes while deepening international cooperation and cross-border intelligence sharing.

She lauded President Tinubu for his leadership, as well as the National Assembly, judiciary, and private sector stakeholders, urging all parties to sustain the reform momentum to maintain compliance with global standards.

At the same plenary, the FATF also removed South Africa, Mozambique, and Burkina Faso from its grey list after acknowledging significant improvements in their financial integrity systems.

Analysts say Nigeria’s exit from the watchlist will ease cross-border transactions, attract capital inflows, and strengthen investor confidence in the country’s financial sector.

Tinubu, while welcoming the development, said it marked the beginning of a new chapter in Nigeria’s financial reform agenda.

“We will sustain the institutionalised reforms, deepen collaboration, and continue to build a financial system that Nigerians and the world can trust,” he stated.

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