Oil, Power and 2027: Inside the Presidency’s Decision to Defer NNPC Block Sales
The Presidency has quietly put the brakes on a major sale of oil blocks held by the Nigerian National Petroleum Company (NNPC). The program, known internally as Project Delta, has
The Nigerian government has halted plans to sell off several oil blocks held by the NNPC, a decision made quietly within the presidency. Known internally as Project Delta, this initiative has been on hold since June due to complex political negotiations. With Nigeria's next general election approaching on January 16, 2027, internal lobbying within Aso Rock has become more aggressive.
Some of President Bola Tinubu's most trusted advisers have attempted to give preference to certain companies, potentially causing a politically charged auction right before the election. Changes in leadership have also contributed to the stalled process. NNPC's former leader, Mele Kyari, initially pushed for the block sales to revive struggling fields, but the plan lost steam after his departure.
His successor, Bayo Ojulari, attempted to revive the program by including 10 more blocks in the sale and extending the final bid deadline to June 4, 2026. However, Ojulari's exit further halted the process. The transaction advisor, Standard Chartered, reportedly received no further communication from the NNPC after Ojulari left.
Recently, money pressures have lessened the urgency to rush the sale. In February 2026, President Tinubu signed Executive Order No. 9, which removed NNPC's power to deduct its management fee and frontier exploration fund directly into the Federation Account. This change has reduced the financial incentive to expedite the sale. Additionally, legal complications have added another layer of difficulty to the situation.
NNPC's forward crude sales arrangements require repayment of 272,000 barrels a day through at least 2028, tied to over $20 billion in legacy loans, creating a complex legal web for any large-scale divestment. Labour unions PENGASSAN and NUPENG have strongly opposed the proposed 30 to 35 percent equity sales, warning that it could threaten around 4,000 jobs.
Despite these pressures, the presidency has decided to defer the sale rather than proceed with immediate divestment. This approach allows time to manage political and structural risks before the high-stakes election year.
Written by urgent.news from This Day's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
