Nigeria’s N341tn Oil Reserves Locked in Undeveloped Fields Amid Rising Debt – Report
Nigeria is sitting on over 3.5 billion barrels of undeveloped oil and condensate reserves, valued at approximately N341 trillion, according to a new report by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). At an average price of $65 per barrel, the reserves represent more than 600 per cent of Nigeria’s 2025 national budget of N54.9 trillion, underscoring the country’s underutilized energy wealth. Analysts note that the potential earnings could fund millions of classrooms, primary health centres, and thousands of kilometres of roads.
Despite this vast wealth underground, Nigeria continues to grapple with a budget deficit of N13 trillion and a rising debt profile. The Debt Management Office revealed that the country’s public debt rose to N149.39 trillion in Q1 2025, a 22.8 per cent increase from the previous year. Experts warn that Nigeria’s heavy borrowing and dependence on oil revenues leave the economy vulnerable, especially as the country still imports refined petroleum despite abundant crude reserves.
The NUPRC report further revealed that 18.8 trillion cubic feet of gas reserves remain undeveloped, alongside the oil fields. Deepwater terrains, which account for about 19 per cent of Nigeria’s oil reserves, remain largely unexploited, with 65 per cent of discovered fields undeveloped. Out of 220 open oil blocks across basins such as the Niger Delta, Benue Trough, and Chad Basin, most remain dormant despite being critical to Nigeria’s energy future.
Industry leaders, including NNPC’s Group Chief Executive Officer, Bayo Ojulari, have warned that crude oil has no economic value until extracted. At the Nigerian Association of Petroleum Explorationists’ 50th anniversary, Ojulari stressed the urgent need to convert reserves into production, while NAPE President Johnbosco Uche urged the government to conduct annual oil block bid rounds to attract investors. They highlighted that Nigeria’s prolific Niger Delta basin could draw significant foreign investment if the right data and incentives are provided.
Meanwhile, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, cautioned that the government may revoke idle oil blocks from companies that fail to develop them. He emphasized that assets left dormant for decades contribute nothing to the economy, urging investors to pursue joint ventures, farm-outs, and new technologies to unlock reserves. With the nation’s debt swelling and oil blocks lying fallow, experts say Nigeria must act swiftly to transform its underground resources into economic growth.
Source: Punch