KEY POINTS
- FG has reduced signature bonuses to $3m–$7m and is offering 50 oil and gas blocks to attract new and serious upstream investors.
- The licensing round prioritises technical capability, credible work programmes, and fast production over aggressive cash bids.
- The fully digital, PIA-compliant process aims to lift Nigeria’s oil output to 2.7 million bpd by 2027 and draw about $10bn in new investments.
The Federal Government has reduced entry costs for Nigeria’s latest oil licensing round as part of efforts to deepen transparency, stimulate production, and draw fresh investment into the upstream sector.
The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, disclosed during its 2025 licensing round pre-bid webinar that signature bonuses have been cut to between $3 million and $7 million, down from $10 million in 2024 and far below the roughly $200 million required in previous years.
According to the regulator, the revised structure is designed to make participation more affordable while prioritising serious, technically capable investors.
50 Oil and Gas Blocks Available Across Key Basins
NUPRC announced that 50 oil and gas blocks are on offer in the delayed 2025 licensing round. These include:
- 15 onshore blocks
- 19 shallow-water blocks
- 15 frontier basin blocks
- 1 deepwater block
The blocks are spread across five sedimentary basins – the Chad Basin, Benue Trough, Anambra Basin, Bida Basin, and the Niger Delta Basin.
The government hopes the offering will help raise Nigeria’s crude oil production from about 1.5 million barrels per day to 2.7 million barrels per day by 2027, while boosting reserves, revenues, and investment inflows.
Shift From Cash Bids to Technical Strength
NUPRC Chief Executive Officer, Oritsemeyiwa Eyesan, said the lower bonuses reflect a deliberate shift away from aggressive cash bids toward technical competence, credible work programmes, financial strength, and speed to production.
She assured investors that the licensing round would operate within a stable, transparent, and predictable regulatory framework.
“You are not navigating uncertainty; you are operating with a framework that is transparent, predictable, and deliberately designed to inspire confidence,” Eyesan said.
International oil companies are already showing interest in the round. Chevron confirmed in December that it would participate, while TotalEnergies has also expressed interest in bidding for assets.
NUPRC said the entire licensing round will be conducted digitally, allowing investors to access data and submit bids through an online portal.
The process will also be subject to oversight by the Nigeria Extractive Industries Transparency Initiative (NEITI) and other government agencies to strengthen public accountability.
All licensing materials have been available on the commission’s portal since December 1, 2025, with dedicated support channels to address investor enquiries.
