Presidency Defers NNPC Oil Block Sales Amid Political Pressures

The Nigerian Presidency has decided to defer the sale of oil blocks held by the Nigerian National Petroleum Company (NNPC), a program internally referred to as Project Delta. This decision comes amid ongoing political negotiations that have intensified as Nigeria approaches elections scheduled for January 16, 2027.

The initiative, which aims to revive underperforming oil fields, has faced delays since June 2023, particularly after the leadership changes from former NNPC boss Mele Kyari to his successor Bayo Ojulari, who added more blocks and extended the bid deadline to June 4, 2026. However, after Ojulari's departure, the process stalled further.

Financial pressures have also shifted following President Bola Tinubu's Executive Order No. 9 in February 2026, which redirected NNPC's revenue to the Federation Account, reducing the urgency for a quick sale. Additionally, labor unions PENGASSAN and NUPENG have expressed concerns that proposed equity sales could jeopardize around 4,000 jobs, leading to the Presidency's preference for deferral over divestment.