The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has confirmed that 10 oil block awardees from the 2024 bid round have begun production, signaling a surge in the nation’s oil output and revenue potential.
Alongside this, the Nigerian National Petroleum Company Limited (NNPC) announced that the $2.8 billion Ajaokuta-Kaduna-Kano (AKK) gas pipeline project is 72% complete as of Q1 2025, a vital step toward strengthening Nigeria’s gas-driven economy.NUPRC and NNPC Spearhead Energy Growth
These developments, unveiled at the 2025 Oloibiri Lecture Series and Energy Forum (OLEF) hosted by the Society of Petroleum Engineers (SPE) Nigeria, underscore the country’s aggressive push to optimize its hydrocarbon wealth while eyeing sustainability.
2024 Bid Round Fuels Nigeria’s Oil Renaissance
The 2024 bid round has emerged as a game-changer for Nigeria’s upstream oil sector. NUPRC Chief Executive Officer Gbenga Komolafe, represented by Executive Commissioner Enorense Amadasu, revealed that 10 Petroleum Processing License (PPL) awardees are now actively producing oil, a feat hailed as a “huge win” for the nation.
The commission wrapped up the 2024 licensing round by awarding 70 offshore petroleum prosperity licenses and another 70 onshore and offshore blocks, totaling 140 new opportunities for exploration and development.
This robust allocation aligns with NUPRC’s strategy to ramp up exploratory activities and fast-track asset development, aiming to hit a lofty target of 4 million barrels of oil and 220 trillion cubic feet of gas production. The swift transition from licensing to production by these awardees showcases the effectiveness of Nigeria’s bidding framework and the capacity of its upstream players.
AKK Pipeline: A Cornerstone for Gas Infrastructure
The Ajaokuta-Kaduna-Kano (AKK) pipeline, a flagship $2.8 billion project, is nearing completion at 72% as of the first quarter of 2025, according to NNPC Limited’s Group CEO Bashir Bayo Ojulari. Speaking through Executive Vice President (Upstream) Udobong Ntia, Ojulari stressed the pipeline’s pivotal role in Nigeria’s gas-focused future. Once operational, this infrastructure will enhance energy supply, drive industrial growth, and support the nation’s Energy Transition Plan, which targets net-zero emissions by 2060. The AKK project, paired with NNPC’s Autogas expansion aiming to convert over 1 million vehicles by 2026, reflects a bold commitment to gas as a bridge to sustainable energy.
Project 1 Million Barrels: A Bold Leap Forward
NUPRC is championing an ambitious “Project 1 Million Barrels Incremental Initiative,” designed to boost Nigeria’s oil production by 1 million barrels per day by 2026. Described as an industry-wide collaboration, the initiative ropes in producers, service providers, financiers, and other stakeholders. Komolafe expressed confidence in its feasibility, citing strong cooperation across the sector. This effort dovetails with broader goals to maximize Nigeria’s hydrocarbon potential, reinforcing its status as a global energy powerhouse amid rising domestic and international demand.
2025 Bid Round Looms with ‘Drill or Drop’ Mandate
Looking ahead, NUPRC is gearing up for the 2025 bid round, building on the momentum of 2024. The commission is enforcing a “drill or drop” philosophy under the Petroleum Industry Act (PIA) of 2021, ensuring that license holders either develop their assets promptly or surrender them to more capable operators. This rigorous approach aims to eliminate idle concessions, accelerate production, and attract serious investors, further energizing Nigeria’s upstream sector.
Industry Voices: Balancing Oil, Gas, and Sustainability
The 2025 OLEF, themed “Driving Energy Sustainability Through Technology, Policy, and Supply Chain Excellence,” brought together key stakeholders to chart Nigeria’s energy future. SPE Nigeria Chairman Amina Danmadami emphasized that, despite global shifts toward renewables, oil and gas remain the backbone of Nigeria’s economic stability, energy security, and industrial growth. She called for optimization through advanced technology, streamlined supply chains, and supportive policies to bolster sector resilience.
NNPC’s Ojulari echoed this, spotlighting the company’s digital transformation efforts as a cornerstone of operational efficiency. He highlighted the PIA’s transformative impact, positioning NNPC as a fully commercial entity poised to deliver unmatched value. Meanwhile, former Petroleum Minister Don Etiebet issued a stern warning against awarding licenses to unqualified entities and urged indigenous firms to prioritize merit over familial ties in leadership succession, stressing competence as critical to sector progress.
OLEF’s Legacy and PTDF’s Endorsement
Since 1991, OLEF has honored Nigeria’s first commercial oil discovery in Oloibiri, Bayelsa State, serving as a vital platform for dialogue and innovation. The Petroleum Technology Development Fund (PTDF), represented by General Manager Ifeoma Nwokike, reaffirmed its support since 2015, praising OLEF’s role in fostering policy discourse and capacity building across Sub-Saharan Africa. Executive Secretary Ahmed Aminu underscored its alignment with Nigeria’s aspirations for sustainable energy growth through strategic partnerships.
