…Hails Allocation of 37 Oil Blocks

Nigeria’s crude oil production increase to 1.67 million barrels per day (bpd) has earned the leadership of the Nigerian National Petroleum Company Limited (NNPC Ltd) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) a vote of confidence from the Good Governance Index Group.

The group, which spoke yesterday at a press conference in Abuja specifically endorsed NNPC Ltd Group Chief Executive Officer, Bayo Ojulari, and NUPRC Chief Executive, Oritsemeyiwa Eyesan, saying the rise in production, alongside renewed investor interest in Nigeria’s upstream sector, provided measurable indicators of progress.

Executive Director of the group, Dr Olayemi Isaac, said crude production rising from 1.60 million bpd in 2025 to 1.67 million bpd in April 2026 was significant for an economy where oil production remains critical to government revenue, foreign exchange earnings and energy security.

The group, however, acknowledged that the increase did not mean all challenges in the petroleum industry had been resolved, insisting that measurable progress should be recognised while legitimate concerns continued to receive appropriate scrutiny.

Isaac urged stakeholders to give Ojulari and Eyesan the necessary support to concentrate on increasing production, attracting fresh investment, improving transparency and strengthening operational and regulatory efficiency.

“Removing the heads of these institutions on the basis of allegations that have not been substantiated would be counterproductive. What Nigeria requires is stronger oversight, better disclosure and continuous institutional accountability,” he said.

The group also commended the NUPRC’s recent licensing process, through which 37 of the 50 oil and gas blocks offered attracted bids, with 143 companies submitting 200 bids. Thirty-one companies emerged as successful bidders.

Isaac described the outcome as evidence that Nigeria could attract serious investment when petroleum assets were administered through a competitive, predictable and transparent framework.

He said the interest generated by the blocks across the Niger Delta, Benin Basin, Anambra Basin, Chad Basin and Benue Trough was particularly significant because of its potential to expand exploration and bring new investment into both established and frontier areas.

According to him, the allocation should not be viewed merely as the distribution of oil acreage, but as an opportunity to translate dormant petroleum assets into exploration, development, production, jobs and government revenue.

He praised Eyesan for insisting that successful bidders meet their financial and operational obligations, including payment of applicable signature bonuses and development commitments, arguing that the approach would discourage speculative acreage holding.

“The message that acreage must translate into investment, exploration and production is exactly what Nigeria needs at this stage of its petroleum industry,” he said.

The group’s endorsement of Eyesan came amid public questions surrounding the licensing process. Isaac said allegations should be tested against evidence and subjected to proper institutional scrutiny rather than being settled through public speculation.

He said the NUPRC’s statutory responsibilities under the Petroleum Industry Act should also be taken into consideration when assessing the commission’s role in the allocation of petroleum assets.

On NNPC Ltd, the group defended the company against what it described as conclusions drawn from the N7.13 trillion energy-security expenditure reported for 2024.

Isaac said the figure should be considered within the context of the company’s audited accounts and the legal framework under which the expenditure was incurred.

He noted that the reported energy-security costs included obligations associated with petroleum supply interventions, exchange-rate differentials and protection of critical oil and gas infrastructure, while stressing that the expenditure should nevertheless remain open to proper scrutiny.

“The discussion around the N7.13 trillion energy security expenditure must be guided by the contents of the audited accounts and the legal framework under which the expenditure was incurred,” he said.

The group maintained that scrutiny of public institutions remained necessary, but warned against treating allegations as established facts before the relevant evidence had been examined.

Isaac also urged civil society organisations to make greater use of the Freedom of Information Act when seeking information from public institutions, saying CSOs could obtain documents and seek clarification directly from agencies rather than relying primarily on media appearances.

The group said the combination of 1.67 million bpd crude production, renewed investor interest in upstream assets and the allocation of 37 oil blocks to 31 successful companies represented developments that should be monitored for their potential impact on Nigeria’s future oil production and investment outlook.

It therefore reaffirmed its support for Ojulari and Eyesan, urging the NNPC Ltd and NUPRC leaderships to sustain the momentum by ensuring that allocated assets translate into actual exploration and production while deepening transparency and accountability.

The group said it would continue monitoring both institutions and advocating stronger disclosure and public accountability, while urging stakeholders to distinguish between legitimate oversight and unsubstantiated allegations.