Nigeria sits on N341tn worth of untapped oil reserves, says report

Over 3.5 billion barrels of crude oil and condensates remain locked in undeveloped oil fields across Nigeria, a recent report from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed. At the current average global price of $65 per barrel, this amounts to $227.5 billion or approximately N341 trillion, using an exchange rate of N1,500 to the dollar.

This figure is over six times Nigeria’s 2025 national budget of N54.9 trillion and, according to estimates, could fund the construction of more than two million primary health care centres or over five million two-classroom blocks. It could also cover 413,000 kilometres of roads.

Despite the enormous value of these untapped resources, Nigeria continues to grapple with a budget deficit exceeding N13 trillion.

The 2025 fiscal budget includes N13.64 trillion for recurrent spending, N23.96 trillion for capital projects, and N14.32 trillion for debt servicing. Nigeria’s total public debt as of March 31, 2025, has risen to N149.39 trillion, an increase of N27.72 trillion from the previous year.

Analysts and officials have linked the country’s rising debt to underutilised oil assets and overdependence on imports for refined petroleum.

The failure to develop oil blocks has meant that Nigeria cannot convert its underground wealth into revenue, prompting increased borrowing.

The NUPRC report states that 18.8 trillion cubic feet of associated and non-associated gas also remain untapped. Deepwater oil and gas fields remain largely undeveloped, with 31.65 percent of fields in this terrain yet to see any development.

Only 12.25 percent of the fields are fully developed, while 5.10 percent are undergoing development.

In deep offshore regions, 52 percent of reserves are undeveloped, compared to 25 percent that are in developed fields. About 23 percent are classified as having development plans in view.

As of January 2025, Nigeria’s oil reserves stand at 37.28 billion barrels, with gas reserves at 210.54 trillion cubic feet.

Yet, 65 percent of discovered oil fields remain idle, while only 10 percent have been brought into production.

The report also notes that 220 oil blocks across various basins remain unlicensed. The deep offshore region leads with 59 unlicensed blocks, followed by the Benue Trough (41), Chad Basin (40), Sokoto Basin (28), and Bida