Nigeria’s oil and gas exploration activity has dropped by 14 per cent, defying sustained efforts by the Federal Government of Nigeria to revive investment and boost output in the critical energy sector, according to a review of major national dailies led by Vanguard.
The decline represents a major setback for government policies aimed at repositioning the upstream petroleum industry as the backbone of national revenue, foreign exchange earnings and energy security. Despite reforms, licensing rounds and repeated assurances to investors, exploration activities — which determine future oil and gas production — continue to weaken.
Industry analysts attribute the downturn to a combination of low investor confidence, persistent insecurity in oil-producing regions, crude oil theft, vandalism of critical infrastructure, and regulatory uncertainties. These challenges have continued to discourage both international and indigenous operators from committing capital to new exploration projects.
The drop is occurring even as Nigeria struggles to meet its crude oil production targets. Average daily output has remained below government benchmarks, worsening fiscal pressures and limiting foreign exchange inflows at a time of heightened economic strain.
Exploration decline also raises long-term concerns for the country’s reserve replacement ratio. Reduced drilling and seismic activity today could translate into lower production capacity in the coming years, undermining plans to expand proven oil and gas reserves and sustain export earnings.
Although the government has repeatedly highlighted reforms under the Petroleum Industry Act and pledged to improve the operating environment, the latest figures suggest that policy intentions have yet to translate into measurable gains on the ground.
For an economy still heavily dependent on hydrocarbons, the sustained fall in exploration activity signals deeper structural issues within the sector — and underscores the urgency for stronger security, regulatory clarity, and investor-focused reforms to prevent further erosion of Nigeria’s oil and gas future.
Abuja Network News
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