By Aisha Muhammad Magaji
The Nigerian National Petroleum Company Limited (NNPCL) has announced that it has secured ₦318 billion in funding to support fresh oil exploration projects across the country. The move is part of the company’s strategic drive to boost crude reserves, strengthen energy security, and attract more investment into Nigeria’s upstream sector.
The financing package, obtained through a consortium of local and international lenders, will be directed toward the development of greenfield exploration blocks in the Niger Delta, frontier basins in the north, and offshore prospects.
In a statement issued on Tuesday, NNPCL’s Group Chief Executive Officer, Mele Kyari, said the fund demonstrates confidence in the company’s long-term growth strategy and Nigeria’s potential as an oil and gas powerhouse.
“This funding is not just about drilling for oil; it is about securing the future of our energy sector, creating jobs, and ensuring Nigeria remains a reliable player in the global energy market,” Kyari said. “With new exploration projects, we aim to grow our reserves, increase production capacity, and provide sustainable value for Nigerians.”
The exploration funding is expected to accelerate activities in frontier basins, including the Chad, Benue, and Gongola regions. Analysts say the government has long viewed these basins as key to diversifying oil production away from the Niger Delta, which has faced challenges from environmental degradation and security concerns.
According to NNPCL, exploration in frontier territories could add up to 1 billion barrels in recoverable reserves, potentially extending Nigeria’s oil wealth for decades.
Nigeria, Africa’s largest oil producer, has faced declining output in recent years due to pipeline vandalism, theft, and underinvestment in upstream projects. The new financing arrangement is seen as a critical intervention to reverse this trend and align with President Bola Tinubu’s push for energy sector reforms.
Energy economist Dr. Fatima Akinlami noted that the funding could have broader economic implications: “If properly managed, these projects could improve government revenue, stabilize foreign exchange inflows, and stimulate local industries tied to oil and gas.”
While the new exploration efforts have been welcomed, environmental advocates are urging NNPCL to balance its upstream expansion with commitments to cleaner energy. With global momentum shifting toward renewables, critics say Nigeria must avoid overdependence on fossil fuels.
Kyari, however, reassured stakeholders that the company remains committed to energy transition goals. “We are investing in gas as a transition fuel, and renewables remain part of our long-term strategy,” he said.
Industry insiders expect exploratory drilling to commence in the first quarter of 2026, with initial results from the Niger Delta prospects expected by year-end. Meanwhile, the federal government is reportedly working with NNPCL to create policy incentives that will ensure exploration yields maximum economic benefits.
For communities in exploration zones, the development raises hopes of new jobs, infrastructure, and social investment programs. However, activists have warned that transparency and environmental safeguards will be key to ensuring the projects benefit host areas.
As Nigeria celebrates 65 years of independence, the latest funding move signals a bold attempt to redefine the country’s energy future balancing immediate oil needs with longer-term sustainability challenges.
