Nigeria’s Oil Block Reforms Bring Transparency and Investment
Vice President Kashim Shettima has highlighted the transparency of Nigeria’s oil block allocation process, sharing that a friend secured an upstream asset without political connections. Speaking at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja, Shettima emphasized that oil blocks are now awarded through open and competitive bidding. He cited the 2025 licensing round, where 143 companies submitted 200 bids for 37 available assets, as evidence of the reform’s success.
The Vice President credited the Petroleum Industry Act (PIA) for ending years of uncertainty in the oil and gas sector. He praised Senator Ahmed Lawan for shepherding the PIA Bill, noting that it provided investors with clear rules and gave host communities ownership of resources. Shettima also highlighted progress in tackling crude oil theft and pipeline vandalism, which had previously impacted production.
Shettima announced that the Deep Offshore Oil and Gas Project Incentive Tax Remission Order 2026 could unlock up to $50bn in new investment, starting with the Bonga South-West project. He urged the NUPRC to maintain transparency, provide predictable timelines, and collaborate with other agencies to eliminate regulatory conflicts. The government remains committed to attracting long-term investment in the hydrocarbon sector while supporting economic diversification.
Gas development remains a priority, with Nigeria’s large gas reserves set to support electricity generation, industrial expansion, and a cleaner energy transition. Shettima urged the NUPRC to uphold transparency and integrity as it begins its next five years, emphasizing the commission’s crucial role in translating government policy into investment and increased production.