NNPC Laments Slow Pace in Developing Nigeria’s Untapped Oil Reserves

The Nigerian National Petroleum Company Limited (NNPC Ltd) has expressed concern over the slow pace in the development and exploitation of the country’s vast untapped oil reserves, warning that prolonged delays could undermine Nigeria’s economic growth and its position as a leading crude oil producer in Africa.

Speaking during an industry forum in Abuja, senior executives of NNPC Ltd said that despite Nigeria’s significant proven reserves, inadequate investments, infrastructural challenges, and bureaucratic bottlenecks have hindered the country from fully harnessing its hydrocarbon potential. They stressed that the global energy market is rapidly evolving, and Nigeria risks losing its competitive advantage if urgent steps are not taken to attract capital, technology, and expertise to the sector.

According to NNPC data, Nigeria has proven crude oil reserves estimated at over 37 billion barrels, in addition to vast natural gas deposits exceeding 200 trillion cubic feet. However, a significant portion of these resources remains undeveloped, with exploration activities lagging due to funding constraints, regulatory uncertainty, and security concerns in oil-producing regions.

The company’s representatives explained that global oil investment flows have increasingly shifted toward countries with more stable and investor-friendly environments, a trend Nigeria must address if it wants to attract the billions of dollars required to unlock new fields. They also pointed out that competing oil producers are aggressively courting investors with flexible fiscal terms, fast-track licensing, and modern infrastructure—advantages that Nigeria must work to match or surpass.

Security challenges, particularly crude oil theft, pipeline vandalism, and unrest in the Niger Delta, have further compounded the situation. NNPC officials noted that these issues not only deter investors but also result in significant production losses, with billions of dollars in revenue forfeited annually. They urged stronger collaboration between government agencies, security forces, and host communities to safeguard infrastructure and ensure uninterrupted operations.

On the regulatory front, the NNPC acknowledged that the enactment of the Petroleum Industry Act (PIA) in 2021 was a positive step, providing a legal framework for reforms in the oil and gas sector. However, they stressed that delays in implementing some provisions of the PIA, alongside slow decision-making processes, have continued to frustrate exploration and development projects.

In addition to regulatory reforms, NNPC executives advocated for targeted incentives to encourage investment in frontier basins such as the Chad, Anambra, and Benue troughs, as well as deep offshore prospects. They argued that Nigeria must position itself as a low-cost, high-efficiency producer capable of competing globally in both oil and gas markets.

The company also highlighted the urgency of diversifying energy sources while maximising returns from existing oil assets. Given the global shift towards renewable energy, NNPC officials warned that the window for exploiting oil reserves at optimal value is narrowing. They emphasised that Nigeria must act swiftly to monetise its resources before demand plateaus or declines.

In outlining its own efforts, NNPC said it is pursuing partnerships with international oil companies, indigenous operators, and financial institutions to accelerate the development of stalled projects. The company is also investing in modern exploration technologies and expanding its upstream portfolio to increase reserves replacement and boost national output.

Industry analysts who attended the forum agreed with NNPC’s concerns, noting that while Nigeria’s reserves remain attractive, investor confidence will hinge on the government’s ability to address insecurity, improve transparency, and streamline regulatory approvals. They added that predictable fiscal policies and consistent engagement with stakeholders would be critical in restoring Nigeria’s reputation as a top-tier investment destination.

As part of the way forward, NNPC reiterated its commitment to working closely with the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission, and other stakeholders to create a conducive operating environment. The company also pledged to intensify efforts in gas development as a strategic complement to oil, given its role in power generation, industrialisation, and revenue diversification.

The NNPC concluded by warning that time is of the essence. Without decisive action, Nigeria could face declining production, reduced foreign exchange earnings, and missed opportunities in a world where energy transitions are reshaping demand patterns. They urged all parties—government, private sector, and host communities—to work in unison to ensure that the country’s hydrocarbon wealth translates into sustainable development and long-term prosperity.