My friend got oil block without political connections — Shettima

Vice President Kashim Shettima says Nigeria has ended the era of political influence in oil block allocations, claiming that a friend of his recently secured an upstream asset without using any political connection.

Shettima said oil acreages are now awarded through open and competitive processes, describing the development as evidence of transparency under the reforms introduced in the petroleum sector.

The Vice President, who represented President Bola Tinubu at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja on Tuesday, said the process was now based on fair competition.

“Acreages are now awarded through open and competitive bidding processes, and I can bear witness to this part. A friend of mine with no connection whatsoever got awarded an upstream location through a fair and just process,” Shettima said.

He said the Federal Government remained committed to making Nigeria a preferred destination for long-term investment in the oil and gas industry, assuring investors that the rules were becoming clearer and more predictable.

Shettima said the Petroleum Industry Act had helped address years of uncertainty in the sector by providing a clearer regulatory framework while giving host communities a greater stake in petroleum-producing areas.

“Five years ago, the PIA brought to an end two decades of waiting. I would like to give credit to Senator Ahmed Lawan for shepherding the passage of the PIA Bill.

“It gave investors clear rules, gave investors a predictable framework, and gave our host communities, for the first time, ownership of resources beneath their land,” he said.

According to the Vice President, the NUPRC was established under the PIA to implement the new regulatory framework and has played a role in improving production and restoring investor confidence.

He said Nigeria had moved from a period when a significant portion of crude production was lost to oil theft and vandalism to one where output was becoming more stable.

“Only a few years ago, our oil and gas fields were losing a large share of their output to theft and vandalism. Today, through the joint effort of our security agencies, operations, host communities and the Commission, production is steady and stronger,” Shettima said.

He added that investors who previously looked elsewhere were returning to Nigeria, which he said had ranked as Africa’s leading destination for oil and gas investment for two consecutive years.

Shettima also credited host communities with helping to maintain stability in oil-producing areas, saying more than 170 communities had benefited from projects in education, healthcare and other sectors identified by the communities.

On investment barriers, the Vice President said the Federal Government was addressing high costs and lengthy contracting processes that had discouraged companies from developing petroleum assets.

He cited presidential directives and executive orders introduced to improve the fiscal and regulatory environment, including incentives for upstream and deep offshore projects.

Shettima said the Deep Offshore Oil and Gas Project Incentive Tax Remission Order 2026 was designed to unlock up to $50bn in new investment, beginning with the Bonga South-West project.

“Some of Nigeria’s largest discoveries are in our deep offshore. And many of them were immediately dismissed because every project had to be negotiated on its own terms.

“The order replaces that unsettled process with clear criteria. It is designed to unlock up to $50bn in new investment, beginning with the Bonga-South West project. Our message to the world is simple: Nigeria is open for long-term investment and terms are clear,” he said.

The Vice President charged the NUPRC to sustain transparency, provide predictable timelines and work with other government agencies to eliminate regulatory conflicts.

He also warned oil companies benefiting from government incentives that they must fulfil their commitments on work programmes, local content, environmental protection and host communities.

“The PIA is a strong foundation, but the foundation is only the beginning. Laws set the rules. Investors sign commercial agreements. Policy, however sound on paper, is only useful when implemented. And that responsibility weighs heavily on the Commission,” Shettima said.

He said the government would continue to reform the sector to attract long-term hydrocarbon investment while using petroleum revenues to support economic diversification.

Shettima also highlighted gas development, saying Nigeria’s large gas reserves could support electricity generation, industrialisation and a cleaner energy transition.

“This is the decade of gas. With the largest gas reserve in Africa, and one of the largest in the world, we will expand gas supply to power industry and economic growth, reduce methane emissions and grow renewable energy alongside it,” he said.

He urged the NUPRC to maintain its commitment to transparency and integrity as it begins its next five years, saying the Commission had a critical role in translating government policies into increased investment and production.