Vice President Kashim Shettima has said the Federal Government has made the allocation of oil assets more transparent, citing the experience of a friend who secured an upstream asset without using political influence.
Shettima disclosed this on Tuesday in Abuja while representing President Bola Tinubu at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission.
According to him, oil acreages are now awarded through open and competitive bidding processes, a development he said demonstrated the transparency of reforms introduced in Nigeria’s upstream petroleum sector.
“A friend of mine with no connection whatsoever got awarded an upstream location through a fair and just process,” Shettima said.
The Vice President said the development was evidence that investors could now participate in the oil licensing process based on merit rather than political connections.
He assured investors that the Federal Government was committed to making Nigeria a destination of choice for long-term investment in the oil and gas sector.
Shettima said the Petroleum Industry Act had provided clearer rules and a more predictable regulatory framework for investors, while also giving host communities a greater stake in petroleum-producing areas
He said the Nigerian Upstream Petroleum Regulatory Commission had played a key role in implementing the reforms and restoring confidence in the upstream sector.
According to him, Nigeria has also recorded improvements in crude oil production following efforts by security agencies, operators, host communities and the regulator to tackle oil theft and vandalism.
“Investors who once looked elsewhere are returning, and for two years now, Nigeria has been ranked Africa’s leading destination for investment in the sector,” he said.
Shettima also highlighted recent government measures aimed at reducing the cost of investment and improving the fiscal and regulatory environment for upstream operators.
He 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.
The Vice President charged the NUPRC to maintain transparency, provide predictable timelines and work with other government agencies to eliminate regulatory conflicts.
He, however, warned that companies benefiting from government incentives must fulfil their commitments on work programmes, local content, environmental protection and host community development.
Shettima said the reforms were intended not only to attract investment but also to ensure that Nigeria’s oil and gas resources contribute to broader economic development.
He added that the Federal Government would prioritise gas development, noting that Nigeria’s vast gas reserves could support electricity generation, industrial growth and the country’s energy transition.
