Nigeria’s oil sector is grappling with a significant setback as 220 oil blocks remain undeveloped amid rising national debt and persistent crude shortages, according to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This challenge is particularly felt in oil-producing regions like Rivers State, where untapped resources could drive economic growth but are stalled by systemic issues.
The NUPRC reports that the deep offshore terrain holds the highest number of unlicensed blocks at 59, followed by the Benue Trough with 41 and the Chad Basin with 40. The Sokoto Basin has 28 open blocks, while the Bida Basin accounts for 16. Even in established areas like the offshore Niger Delta, seven blocks remain idle, with the Anambra Basin holding 13 and both the Benin Basin and onshore Niger Delta each having eight. Despite recent efforts, including the award of 24 blocks in the 2022/2023 deepwater mini bid round and the 2024 licensing round, the majority of these blocks remain untouched due to financial and operational hurdles.
Nigeria’s debt has surged to N149.39 trillion in the first quarter of 2025, a 22.8% increase from N121.67 trillion in 2024, driven by new borrowings and naira depreciation, according to the Debt Management Office. This growing debt burden, coupled with crude shortages, has strained local refineries, including those in Rivers State, where the Port Harcourt Refinery struggles to secure steady feedstock. The Dangote Refinery, a major player, has resorted to importing 10 million barrels of crude from the United States in July to meet demand, highlighting Nigeria’s reliance on foreign supplies despite its vast reserves.
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For residents like Chika, a small business owner in Port Harcourt, Rivers State, the impact is personal. “We hear about oil wealth, but fuel prices keep rising, and jobs are scarce,” she said. “These abandoned blocks could change things, but nothing moves.” Industry experts stress that developing these blocks could boost revenue and support local refining, reducing import dependency. However, high production costs, averaging $30 per barrel due to security investments, and issues like pipeline vandalism continue to hinder progress.
The NUPRC is pushing for increased investment, but analysts warn that without addressing debt and infrastructure challenges, Nigeria’s oil potential will remain locked away, affecting communities in Rivers State and beyond.
