NAPE Calls for Better Incentives to Unlock Nigeria’s Frontier Oil Basins
By Naija Enquirer Staff
The Nigerian Association of Petroleum Explorationists (NAPE) has urged the Federal Government to introduce better incentives aimed at attracting investors to Nigeria’s frontier oil basins.
Speaking at a panel session during the ongoing Nigeria International Energy Summit (NIES), NAPE President Mrs. Olajumoke Ajayi highlighted the need for measures that encourage exploration of new reserves, particularly in the country’s less-developed frontier basins.
“While Nigeria is ahead of most African countries in oil and gas development, we can learn from others, such as Ghana, in structuring incentives for frontier basins,” Ajayi said. She noted that of the 50 assets currently on offer in the ongoing bid rounds, 15 are frontier basins.
Ajayi stressed that continuous exploration is crucial. “As existing reserves are depleted, they must be replaced with new discoveries. NAPE continues to advocate for exploration because the future of Nigeria’s oil and gas sector depends on it.”
The NAPE President cited Ghana’s model as an example, explaining that companies can access assets for seismic studies and evaluation without immediately paying a signature bonus. “If the conditions are unsatisfactory, the asset can be dropped with no penalty. But if terms are accepted, the company proceeds, and value is added to the asset,” she said.
Ajayi emphasized that such incentive structures encourage investor participation, drive value creation, and ultimately benefit both government and industry through royalties, taxes, and potential discoveries.
“Attractive conditions will lure more investors, accelerate exploration, and ensure Nigeria’s oil and gas sector remains competitive and sustainable,” she concluded.
