The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bayo Ojulari, has issued a critical alert that Nigeria needs to quickly turn its oil reserves into production, stressing that crude oil sitting underground is of no value until it’s extracted.
Reports indicate that around 220 oil blocks have been inactive for years across different onshore and offshore basins in the country. However, the Nigerian Upstream Petroleum Regulatory Commission has revealed that these oil blocks will soon be available for licensing in the upcoming bidding rounds.
While speaking to attendees in Lagos on Thursday during the 50th anniversary celebration of the Nigerian Association of Petroleum Explorationists, Ojulari, represented by the company’s Executive Vice-President of Upstream, Udobong Ntia, highlighted that Nigeria has held a substantial amount of oil reserves for many years, insisting that the time to extract it has arrived.
“Our underground oil reserves are of no benefit to anyone. They need to be converted into cash for the country to gain the advantages we need. We have held onto this oil for too long. It’s time to start the agreements that will enable the extraction of oil from the ground,” Ojulari remarked.
Ojulari recognized that obtaining funding is a major challenge for the oil industry, but he remains hopeful that this can be addressed by creating a business-friendly atmosphere. He pointed out that attracting investment in the sector requires clear returns for investors, emphasizing that they want guarantees that their investments will be profitable.
On the future of the industry, Ojulari said that sustainability is vital for improving Nigeria’s energy outlook while protecting the environment. “How do we tackle climate change while still promoting fossil fuels? It’s not a zero-sum game. We can achieve both goals at the same time.
Industrialized nations have boosted their economies by utilizing fossil fuels. What approaches can we adopt to achieve similar economic advancement without causing environmental damage? How can we achieve our goals in a responsible and sustainable way, while making sure we uphold important values, as we plan for the next 50 years? It’s important to recognize that sustainability will be key. He said, “It’s already massive with all the changes and movements we see.”
He shared how happy he was about the big increase in investments in the oil industry from international banks, noting that these investments reached $800 billion last year.
Earlier, Johnbosco Uche, the President of NAPE, expressed similar concerns about Nigeria’s untapped oil and gas resources.
Uche said, “Nigeria has a huge amount of untapped potential, especially in natural gas, which is becoming more important as a transition fuel.” He mentioned that Nigeria has over 600 trillion cubic feet of undiscovered gas in its sedimentary basins, which represents a big chance and a smart way to move towards industrial growth, energy security, and sustainable development.
“We need to approach gas exploration with a clear purpose, and now is the time to dig deeper and smarter. We have areas in oil that are unappraised, partially appraised, and near-field exploration prospects that need to be looked at, developed, and produced sustainably.
“I urge the government to collaborate with us, offering the financial and regulatory support necessary for industry players to explore, find, and produce oil and gas effectively.
“We also need to get back to the basics of exploration: high-quality data (through seismic acquisition), creative ideas, and teamwork. We should look again at discoveries that haven’t been evaluated, find the value that is not currently recognized, and increase our reserve replacement ratio. After that, we should embrace digital transformation, machine learning, and artificial intelligence, using them on our extensive database for impactful result. All these efforts will help us reach the national production goals set for 2030,” he said.
In a recent announcement about workforce development, he pointed out, “Our workforce is getting older, and we often look for candidates with experience when hiring. But if we always focus on experienced workers, who will train the newcomers? Remember, every seasoned professional started as a recent graduate at some point. Now is the time to set up more structured programs for internships, time off for personal projects, and mentorship opportunities in the oil and gas industry. We must invest in young professional , provide them with the right skills, guidance, and clear paths for growth. Our people are our greatest asset, and we need to take care of them.”
He also called for the creation of new Centers of Excellence for Petroleum Studies—one in the northern region and another in the south—where training, research, and innovation can thrive.
