This was revealed by the Chief Executive of the NUPRC, Gbenga Komolafe, during a recent meeting with the Independent Petroleum Producers Group (IPPG) at the commission’s headquarters in Abuja.

Komolafe explained that the policy is aimed at revitalising Nigeria’s oil and gas industry by ensuring that only active and committed operators retain exploration and production licences. He emphasized that this initiative is expected to maximize the value of hydrocarbon assets and increase government revenue.

“The commission will not hesitate to withdraw dormant licences. Operators must drill or drop. It’s time to put idle assets to work for the benefit of the nation,” Komolafe said, reinforcing earlier remarks by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who had pledged to reclaim all inactive oil fields.

He also highlighted several regulatory reforms instituted under the Petroleum Industry Act (PIA), including the digitalisation of licensing processes, which he said has improved efficiency and reduced red tape.

The IPPG delegation, led by its Chairman Abdulrazaq Isa—who also chairs Waltersmith Group—used the visit to commend the commission for facilitating recent divestments of assets by international oil companies. These transfers, they noted, have empowered indigenous operators and opened new avenues for domestic participation in the upstream sector.

The group also expressed strong support for the NUPRC’s “Project One Million Barrels Incremental” initiative, pledging their commitment to increase Nigeria’s daily crude oil production and pursue growth in both oil and gas development.

The new policy is part of broader reforms aimed at reshaping Nigeria’s energy landscape and stimulating greater productivity from local players.

The post FG Moves to Revoke Idle Oil Licences Under ‘Drill or Drop’ Policy appeared first on Housing TV Africa.

Speaking during a recent interview on BBC Hausa, Bayo Ojulari, the Group Chief Executive Officer, emphasized the strategic importance of both the oil drilling operations and the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project. According to him, these initiatives are essential to strengthening Nigeria’s economy.

“We’re moving forward with drilling in the Kolmani field and continuing our work on the AKK gas pipeline,” Ojulari explained. “The companies already engaged in the project will remain on-site, and we’re also open to new partnerships. These projects will have a significant positive impact on Nigerians, and by next month, people will begin to see visible results.”

The AKK gas pipeline spans 614 kilometers, running from Ajaokuta in Kogi State to Kano, with transit points in Abuja, Kaduna, and Zaria. The infrastructure is designed to transport natural gas across several northern states, supporting industrial and domestic use.

In 2019, NNPC discovered hydrocarbon deposits in the Kolmani River II Well, located in the Gongola Basin within Nigeria’s Upper Benue Trough. This find marked a milestone as the first confirmed commercial oil discovery in the northern part of the country. Drilling officially commenced in 2022 under a federal government initiative.

The discovery in Kolmani is believed to hold over one billion barrels of crude oil and approximately 500 billion cubic feet of natural gas. According to NNPC, the project has already drawn $3 billion in investments and is expected to drive foreign interest, create employment opportunities, and significantly increase national revenue.

Ojulari also touched on the company’s relationship with the Dangote Refinery, stating that any previous disputes have been resolved.

“We commend Aliko Dangote for his bold investment in the continent,” he said. “The issues between NNPC and the Dangote Refinery have been settled. We’re now working together toward a shared goal — improving access to fuel for Nigerians. Fuel marketers will soon be able to make direct purchases from the refinery without delay. We’re committed to solving any future challenges cooperatively and efficiently.”

The post Oil Drilling Set to Resume in Northern Nigeria, Says NNPC appeared first on Housing TV Africa.

Global market turmoil, exacerbated by tumbling oil prices and unpredictable foreign trade measures, is putting significant strain on Nigeria’s economy, according to the nation’s petroleum regulatory authority.

Farouk Ahmed, who heads the Nigerian Midstream and Downstream Petroleum Regulatory Authority, expressed concern over the impact of volatile crude prices, warning that the trend is eroding government revenue at a time when national output remains subdued.

Speaking in Abuja at a media briefing, Ahmed explained that while lower fuel costs may provide short-term relief to consumers, the broader economic implications for an oil-dependent country like Nigeria are far from beneficial. He pointed to erratic foreign policies — particularly from the United States — as a major contributor to instability in the sector, citing sudden swings in oil prices as a symptom of deeper market uncertainty.

He highlighted a recent plunge in crude value from $73 to $60 per barrel within a 24-hour window as an example of the volatility hurting national earnings. According to him, inconsistent tariff policies from the U.S. — particularly under former President Donald Trump — have made it increasingly difficult for countries reliant on commodity exports to plan ahead.

The disruptions don’t end with external pressures. Nigeria is also grappling with internal issues such as declining production rates and vandalised pipelines. Recent figures from OPEC show the country’s daily output has slipped to around 1.4 million barrels, a significant drop compared to previous years.

Ahmed noted that uncertainty driven by erratic global trade decisions has made investors more risk-averse, leading to short-term, reactive trading patterns in the energy market. This has left oil prices especially vulnerable to sudden changes, frustrating efforts to stabilise the Nigerian economy.

Despite these headwinds, there are some signs of progress on the domestic front. Ahmed revealed that petrol imports have declined dramatically — from 44.6 million litres per day in August 2024 to 14.7 million in April 2025 — thanks in part to a ramp-up in local refining.

Local output has seen a more than sixfold increase, with refineries like Port Harcourt and modular plants contributing over 26 million litres daily. This marks a significant turnaround from last September, when local facilities were barely operational.

Even so, total national supply only exceeded the government’s 50 million-litre daily benchmark twice in recent months. While Dangote’s refinery has become a key player, delivering up to 22 million litres per day, state-run facilities like the Nigerian National Petroleum Company have scaled back, with some months registering no output at all.

Ahmed added that six licensed private refineries currently produce over 679,000 barrels per day, with Dangote’s complex alone handling 650,000. State-owned plants contribute a combined 445,000 barrels. Despite these figures, only a small portion of licensed facilities are fully operational, highlighting ongoing capacity issues.

The authority has also issued dozens of licences for future developments, with several large-scale builds — including Dangote’s — approaching completion. However, the sector remains vulnerable to the international price of oil, which continues to trend downward due to global instability.

Ahmed warned that unless these conditions improve, both in terms of domestic production stability and foreign trade consistency, Nigeria’s revenue outlook will remain precarious.

The post Nigeria’s Oil Revenue Threatened as Global Instability Disrupts Market Confidence appeared first on Housing TV Africa.