Nigeria has sharply reduced the cost of entering its upstream oil sector as it opened bidding for 50 oil and gas blocks, a move aimed at attracting long-term investors in a highly competitive global energy market.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said signature bonuses for the delayed 2025 licensing round have been cut to between $3 million and $7 million, down from $10 million in 2024 and nearly $200 million required in earlier years.
The decision, approved by President Bola Tinubu, was announced by NUPRC Chief Executive Oritsemeyiwa Eyesan during a pre-bid webinar on January 28.
Lower Entry Barriers for Upstream Oil Investment
Eyesan said the revised pricing structure was designed to reduce entry barriers while discouraging speculative bidders.
“Signature bonuses are now set within a value range that places greater weight on technical capability, credible work programmes and financial strength,” she said.
According to the regulator, the shift reflects growing competition for global capital and the need to make Nigeria more attractive to serious upstream investors.
Details of the Oil and Gas Licensing Round
The 2025 licensing round offers 50 oil and gas blocks across five sedimentary basins. These include 15 onshore assets, 19 shallow-water blocks, 15 frontier basin assets, and one deepwater block.
Eyesan described the exercise as a strategic intervention to grow reserves, boost production and strengthen Nigeria’s energy security.
Regulatory Stability Under the Petroleum Industry Act
The NUPRC said the bid process will follow a five-stage framework, including pre-qualification, data acquisition, technical evaluation and a commercial bid conference.
Eyesan assured investors that the process would fully comply with the Petroleum Industry Act 2021, with digital tools used to ensure transparency and public accountability. Oversight agencies, including NEITI, will monitor the process.
All licensing materials have been available on the commission’s portal since December 1, 2025.
The 2025 round is the first under Eyesan’s leadership and builds on earlier licensing rounds that concluded without litigation, a key concern for foreign investors.
