Nigeria’s oil industry is once again confronted with a familiar but troubling question: what happens to oil assets that are allowed to sit idle while the nation struggles to increase production and attract the investment needed to strengthen its economy?
The revelation that 19 upstream oil licences have stated expiry dates falling within 2026 should therefore not be treated as a mere regulatory statistic. It is a major test of the Federal Government’s determination to end the culture of holding oil assets without meaningful exploration and development.
According to the Nigerian Upstream Concession Situation Report of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the affected concessions comprise 12 Petroleum Prospecting Licences (PPLs) and seven Oil Prospecting Licences (OPLs).
Some have already reached their stated expiry dates, while others are due to expire before the end of December. Importantly, the report does not say that the licences have been revoked.
Some are undergoing conversion or may qualify for optional tenure extension. That distinction is important, because expiry does not automatically mean forfeiture.
Nevertheless, the development raises legitimate questions about Nigeria’s management of its petroleum resources.
The country cannot continue to celebrate the award of oil licences while allowing awarded assets to remain dormant for years. An oil block is not a trophy, political reward or investment certificate to be kept indefinitely.
It is a national economic asset entrusted to an operator with the expectation that exploration, appraisal, development and production will follow.
This is precisely why the Federal Government and NUPRC must be firm with the “drill or drop” principle.
The message from the regulator that operators who fail to develop their assets risk losing them is commendable. NUPRC Chief Executive, Oritsemeyiwa Eyesan, has rightly warned successful bidders that winning an oil licence should not be regarded as a trophy but as the beginning of an obligation to work the asset.
That position should be applied consistently, not only to new awardees but also to existing licence holders whose acreage has remained unproductive.
At the same time, the government must avoid creating uncertainty that could frighten away genuine investors. Where an operator has demonstrated serious exploration and development efforts, and has met the requirements of the Petroleum Industry Act and applicable regulations, legitimate extension or conversion should be considered transparently.
But where a licence holder has simply sat on an asset without credible work programmes, the government should have the courage to take the acreage back and offer it to investors who are prepared to work.
The contrast between the 19 licences approaching expiry and the 19 new Petroleum Prospecting Licences issued by NUPRC in July 2026 under the 2024 Licensing Round and the 2022/2023 Mini Bid Round is particularly instructive.
It demonstrates that Nigeria possesses substantial acreage and that the upstream sector is undergoing a process of renewal. What the country needs now is not merely more licences on paper, but more wells drilled, more discoveries developed, more barrels produced and more jobs created.
The Federal Government should therefore use the 2026 expiry schedule as an opportunity to conduct a comprehensive performance audit of the affected licences.
Each operator should be assessed on exploration expenditure, technical activity, work commitments, production potential, regulatory compliance and the economic value delivered to Nigeria. Decisions on renewal, conversion, extension or revocation should be based on measurable performance rather than lobbying, influence or political considerations.
Nigeria has spent decades talking about increasing oil production while leaving enormous portions of its petroleum acreage underdeveloped. That era should end.
The Petroleum Industry Act provides a framework for responsible resource management, and NUPRC must demonstrate that the framework works in practice. Oil blocks must work for Nigeria, not merely remain on the books of private companies.
The 19 licences facing 2026 expiry should therefore become a landmark test of regulatory courage. If their holders have performed, let the law protect their legitimate interests.
If they have failed to meet their obligations, let the assets return to the Nigerian people and be reallocated transparently to capable investors. Nigeria cannot afford another cycle of dormant acreage, delayed exploration and lost opportunities.
The message should be simple: if you have the licence, work the asset; if you cannot or will not work it, give way to those who can. That is not punishment.
It is responsible for stewardship of a national resource and a necessary step towards restoring confidence, increasing production and unlocking the full economic potential of Nigeria’s oil and gas industry.
The Evangelist News
