NUPRC @ 5: My Friend Won An Oil Block Without Political Connections, Says Shettima

Vice President Kashim Shettima has said a friend of his with no political connections won an oil block through a fair and competitive process.

Shettima, who represented President Bola Tinubu at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja on Tuesday, offered the example as evidence that oil block awards are now open and transparent, Punch reports.

“Acreages are now awarded through open and competitive bidding processes, and I can bear witness to this part,” he said. “A friend of mine with no connection whatsoever got awarded an upstream location through a fair and just process.”

He did not name the friend or the block.

Shettima said the federal government was determined to make Nigeria a destination of choice for long-term hydrocarbon investment. He told investors the terms were clear and that government would enforce compliance and accountability.

The NUPRC was established under the Petroleum Industry Act (PIA) of 2021 to regulate the upstream sector, including licensing, leases and field development. It has since run licensing rounds, including the 2024/2025 round, which drew bids from local and international companies.

The Vice President said the PIA ended years of uncertainty by giving investors clear rules and giving host communities ownership of resources beneath their land. He credited former Senate President Ahmad Lawan with shepherding the bill through the National Assembly.

“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,” he said.

He said oil and gas fields that once lost a large share of output to theft and vandalism were now seeing steadier production, through the joint effort of security agencies, host communities and the Commission. More than 170 host communities, he added, had benefited from projects in education, healthcare and other areas they selected.

Shettima said government was also tackling the high cost and long contracting processes that had discouraged investors, through presidential directives and executive orders offering incentives to upstream operators and deep offshore projects.

He said the Deep Offshore Oil and Gas Project Incentive Tax Remission Order 2026 was designed to unlock up to $50bn in new investment, beginning with the Bonga South-West project, replacing project-by-project negotiation with clear criteria.

He charged the NUPRC to maintain transparency, ensure predictable timelines and work with other agencies to eliminate regulatory conflicts. Companies benefiting from incentives, he warned, would be expected to meet their commitments on work programmes, local content, environmental protection and host communities.

“The PIA is a strong foundation, but the foundation is only the beginning,” he said.

On gas, he said: “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 urged the NUPRC to approach its next five years with the same commitment and integrity.