Nigeria has taken another decisive step to revive upstream investment, as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) engaged prospective bidders in the ongoing 2025 Oil Licensing Round, where 50 oil and gas blocks are currently on offer.
The engagement, held in Lagos, brought together government officials, international and indigenous operators, independent producers and other stakeholders to clarify bidding requirements, regulatory expectations and development timelines under the Petroleum Industry Act (PIA).
NUPRC Cuts Signature Bonus to Attract Investors
At the pre-bid conference, NUPRC Chief Executive, Oritsemeyiwa Eyesan, announced a reduction in signature bonuses and other pre–first oil fees, describing the move as a deliberate effort to lower entry barriers and stimulate upstream activity.
Eyesan explained that feedback from previous licensing rounds informed the policy shift, adding that the commission is prioritising technically competent operators capable of developing assets efficiently. She noted that many of the blocks on offer are recovered fallow fields, reclaimed under the PIA due to prolonged inactivity.
According to her, the reforms supported by recent tax legislation are designed to drive growth, expand revenue and strengthen Nigeria’s competitiveness as an energy investment destination.
Gas Incentives, FIDs Shape 2025 Licensing Round
Eyesan disclosed that government incentives for gas development are already yielding results, with several Final Investment Decisions (FIDs) reached across the sector. She said these developments are expected to influence bidder confidence and shape participation in the licensing round.
She added that Nigeria’s upstream sector is undergoing structural change, evidenced by the growing number of indigenous producers and renewed interest from investors. The 2025 licensing round, she said, signals Nigeria’s commitment to building a sustainable, investment-friendly upstream ecosystem.
Lokpobiri Warns Against Holding Assets Idle
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, warned bidders against treating oil blocks as status symbols, stressing that licenses must translate into actual asset development within approved timelines.
He said the bidding framework reflects a strong commitment to transparency and accountability, noting that licenses are time-bound and do not confer ownership. Lokpobiri also clarified that the PIA does not allow for refunds of bidding fees or signature bonuses, adding that NUPRC has complied fully with statutory requirements for licence awards.
The minister said the licensing round presents a clear opportunity to contribute to Nigeria’s production growth ambitions, urging operators to focus on timely development and value creation.