Vice President Kashim Shettima has said oil blocks in Nigeria are now allocated through open and competitive processes, adding that a friend of his obtained an upstream asset without leaning on political connections.
Speaking in Abuja on Tuesday at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission where he represented President Bola Tinubu, Shettima said the experience reflected the transparency of the reforms introduced into the upstream oil sector.
He said, “Acreages are now awarded through open and competitive bidding processes, and I can bear witness to this part. A friend of mine with no connection whatsoever got awarded an upstream location through a fair and just process.”
The Vice President also declared that the Federal Government remains resolute in making Nigeria a destination of choice for long-term hydrocarbon investment. He assured investors that the terms were clear and that the government would keep enforcing compliance and accountability.
His remarks came as the Federal Government spotlighted reforms designed to draw fresh investment into the oil and gas industry, lift crude oil production and remove the obstacles that have kept investors from developing Nigeria’s petroleum resources.
The NUPRC came into being after the Petroleum Industry Act, PIA, was enacted in 2021. It regulates the upstream petroleum sector and oversees the administration of petroleum resources, including licensing, leases and field development.
Since then, the Commission has run licensing and bidding exercises, among them the 2024/2025 oil licensing round, which pulled in bids from local and international companies for the available oil blocks.
Shettima said the PIA brought an end to years of uncertainty in the industry by setting out clearer rules for investors, while also giving host communities a larger stake in petroleum-producing areas.
He stated that the reforms have strengthened Nigeria’s standing as Africa’s leading destination for investment in the oil and gas sector for two years running.
“Five years ago, the PIA brought to an end two decades of waiting. I would like to give credit to Senator Ahmed Lawan for shepherding the passage of the PIA Bill.
“It gave investors clear rules, gave investors a predictable framework, and gave our host communities, for the first time, ownership of resources beneath their land,” he said.
According to the Vice President, the NUPRC was established to give effect to the new petroleum law, and the Commission has helped to raise oil production and win back investor confidence in Nigeria’s upstream sector.
He noted that Nigeria has moved from a time when a significant share of crude production was lost to theft and vandalism to a point where output is becoming steadier.
“Only a few years ago, our oil and gas fields were losing a large share of their output to theft and vandalism. Today, through the joint effort of our security agencies, operations, host communities and the Commission, production is steady and stronger.
“Investors who once looked elsewhere are returning, and for two years now, Nigeria has been ranked Africa’s leading destination for investment in the sector,” Shettima said.
Shettima also underscored the part played by host communities in keeping oil-producing areas stable, revealing that more than 170 communities had benefited from projects in education, healthcare and other areas chosen by the communities.
He said the Federal Government was equally working to deal with the high cost and long contracting processes that had put off investment in the sector.
The Vice President noted that a number of presidential directives and executive orders had been issued to improve the fiscal and regulatory environment, including incentives for upstream operators and deep offshore projects.
He explained that the Deep Offshore Oil and Gas Project Incentive Tax Remission Order 2026 was designed to unlock as much as $50bn in new investment, starting with the Bonga South-West project.
“Some of Nigeria’s largest discoveries are in our deep offshore. And many of them were immediately dismissed because every project had to be negotiated on its own terms. The order replaces that unsettled process with clear criteria.
“It is designed to unlock up to $50bn in new investment, beginning with the Bonga-South West project. Our message to the world is simple: Nigeria is open for long-term investment and terms are clear,” he said.
Shettima charged the NUPRC to uphold transparency, keep to predictable timelines and work with other government agencies to remove regulatory conflicts.
He also cautioned that companies enjoying government incentives would be expected to deliver on their commitments regarding work programmes, local content, environmental protection and host communities.
“The PIA is a strong foundation, but the foundation is only the beginning. Laws set the rules. Investors sign commercial agreements. Policy, however sound on paper, is only useful when implemented. And that responsibility weighs heavily on the Commission,” Shettima said.
He said the government would press on with reforms to make Nigeria a preferred destination for long-term hydrocarbon investment, while channelling oil and gas revenues into wider economic diversification.
The Vice President added that gas development would also be a priority, noting that Nigeria’s vast gas reserves could power electricity generation, industrial growth and a cleaner energy transition.
“This is the decade of gas. With the largest gas reserve in Africa, and one of the largest in the world, we will expand gas supply to power industry and economic growth, reduce methane emissions and grow renewable energy alongside it,” he said.
Finally, he urged the NUPRC to carry the same commitment and integrity into its next five years, stressing that the Commission has a key role in turning government policy into actual investment and production.
