Nigeria, Africa’s largest oil producer, is sitting on enormous undeveloped reserves that could transform its economy if tapped, according to a new report by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The commission estimates that the country has over 3.5 billion barrels of oil and condensate reserves locked in underdeveloped fields across its basins.
Valued at an average benchmark of $65 per barrel, the reserves are worth about $227.5 billion.
That figure is more than six times Nigeria’s 2025 national budget of ₦54.9 trillion.
Analysts note that if properly harnessed, this wealth could fund sweeping development projects nationwide, including nearly two million basic health centers at ₦150 million each, over five million two-classroom blocks at ₦65 million each, or 413,000 kilometres of highways at ₦825 million per kilometre, according to calculations published by The Punch
Yet despite this idle potential, Nigeria’s 2025 fiscal plan reflects a projected deficit of almost ₦13 trillion, highlighting the gap between its borrowing requirements and underutilized reserves.
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The budget allocates ₦13.64 trillion for recurrent spending, ₦23.96 trillion for capital projects, ₦14.32 trillion for debt servicing, and ₦3.65 trillion for statutory transfers.
To close the ₦13.08 trillion deficit, the government intends to rely on both domestic and external borrowing.
The NUPRC report also underscores how little progress has been made in unlocking the country’s vast oil and gas reserves.
Nigeria still holds 18.8 trillion cubic feet (TCF) of related and non-associated gas that has yet to be produced.
Data show that 31.65% of deepwater oil and gas fields remain completely undeveloped, while only 12.25% are developed.
A further 5.10% fall into the “development in view” category, leaving a majority of fields untouched.
For deep offshore oil and condensate reserves, about 1.7 billion barrels, or 25%, are in established fields, with another 1.5 billion barrels, or 23%, under development.
But more than half, 52%, remain underdeveloped. As of January 1, 2025, Nigeria’s deepwater reserves accounted for 19% of the nation’s oil and 12% of its gas.
However, 65% of identified deepwater fields remain underdeveloped, with just 10% fully developed and 25% still in progress.
Overall, Nigeria holds about 37.28 billion barrels of oil and 210.54 trillion cubic feet of gas.
The NUPRC also revealed that 220 unlicensed oil blocks are scattered across the country’s onshore and offshore basins.
Of Nigeria’s gas reserves, only 4.7 TCF has been officially developed, with another 877 billion cubic feet currently in the development phase.
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Image Credit: Business Insider Africa
