The Federal Government is set to enforce a new “drill or drop” policy aimed at revoking dormant oil licences and boosting crude production, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced.

Speaking during a meeting with the Independent Petroleum Producers Group (IPPG) in Abuja, NUPRC Chief Executive Gbenga Komolafe said the move is part of a broader strategy to revitalise the oil sector and ensure productive use of oil blocks.

“Operators must either begin production within a specified timeframe or relinquish their licences,” Komolafe stated, adding that the goal is to “ensure optimal use of assets and boost government revenue.”

The policy will apply to both local and international oil companies holding undeveloped assets. The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has also affirmed the government’s readiness to take over idle wells.

At the meeting, Komolafe also highlighted reforms under the Petroleum Industry Act (PIA), including the automation of licensing processes. “These steps have significantly reduced bureaucratic delays and improved operational efficiency,” he said.

IPPG Chairman Abdulrazaq Isa, who also leads Waltersmith Group, commended the NUPRC for its role in recent asset divestments by international oil companies, which have allowed more indigenous firms to scale operations.

The IPPG reaffirmed its support for the government’s “Project One Million Barrels Incremental” initiative, aimed at significantly increasing Nigeria’s daily crude output.

“This visit was a strategic engagement to strengthen collaboration between the commission and indigenous producers,” the NUPRC added.