Shettima Says Oil Blocks Now Awarded Through Open Bidding

Vice President Kashim Shettima has said Nigeria’s oil blocks are now being awarded through open and competitive bidding processes, with political connections no longer determining access to upstream assets.

Shettima stated this on Tuesday while representing President Bola Tinubu at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission NUPRC in Abuja.

He said the transparency of the new process was demonstrated by the experience of a friend who, according to him, secured an upstream asset without any political connections.

“A friend of mine with no connection whatsoever got awarded an upstream location through a fair and just process,” he said.

The Vice President said the reforms were part of efforts to improve investor confidence and make Nigeria a preferred destination for long-term investment in the oil and gas sector.

He said the Petroleum Industry Act (PIA), enacted in 2021, had established clearer rules and a more predictable regulatory framework for investors, while giving host communities a greater stake in petroleum-producing areas.

Shettima credited former Senate President Ahmed Lawan with helping to facilitate the passage of the PIA, saying the legislation ended years of uncertainty in the industry.

He said the NUPRC was established under the new petroleum framework to regulate the upstream sector and oversee licensing, leases and field development.

According to him, the commission has contributed to improved oil production and renewed investor confidence, while collaboration among security agencies, host communities and industry regulators has helped reduce losses associated with crude theft and vandalism.

Shettima said more than 170 host communities had benefited from development projects covering areas such as education and healthcare.

He also highlighted government measures aimed at reducing regulatory delays and attracting new investment, including the Deep Offshore Oil and Gas Project Incentive Tax Remission Order 2026.

The order, he said, was designed to unlock up to 50 billion dollars in new investment, beginning with the Bonga South-West project.

Shettima urged the NUPRC to sustain transparency, ensure predictable regulatory timelines and strengthen coordination with other government agencies.

He also warned companies benefiting from government incentives to meet their commitments on work programmes, local content, environmental protection and host-community development.

The Vice President said the government would continue to prioritise gas development, describing the period ahead as a critical decade for using Nigeria’s gas resources to support electricity generation, industrial growth and economic diversification.

He charged the NUPRC to build on its achievements in the next five years by translating regulatory reforms into increased investment, production and broader economic benefits.