NUPRC Chief Executive Oritsemeyiwa Eyesan addressing investors at the 2025 oil licensing round pre-bid conference in Lagos
The Federal Government has reduced entry costs for oil and gas investors in a major policy shift aimed at boosting production, improving transparency, and attracting fresh capital into Nigeria’s upstream sector.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced that signature bonuses for the 2025 oil licensing round have been slashed to between three million and seven million dollars, down from ten million dollars in 2024 and about two hundred million dollars in earlier years.
Why This Matters
Nigeria is competing for limited global energy investment. High upfront costs previously discouraged new players. The regulator says the new pricing structure removes barriers and prioritises technical competence, financial strength, and speed to production over aggressive cash bids.
50 Oil and Gas Blocks on Offer
A total of 50 assets are available in the round, covering:
- 15 onshore blocks
- 19 shallow-water blocks
- 15 frontier basin blocks
- One deepwater block
The assets span major basins including the Niger Delta, Chad Basin, Benue Trough, Anambra Basin, and Bida Basin.
Production Target
The government aims to increase crude oil production from 1.5 million barrels per day to 2.7 million barrels per day by 2027, strengthening national revenue, reserves, and energy security.
Focus on Merit, Not Money
Adressing the issue, NUPRC Chief Executive Oritsemeyiwa Eyesan said the process will strictly reward companies with:
- Strong technical capacity
- Credible exploration and development plans
- Financial capability
- Fast-track production strategies
According to Eyesan, “You are operating within a framework that is transparent, predictable and deliberately designed to inspire confidence,” Eyesan told investors.
Transparency Measures
To address past concerns over licensing opacity:
- The process will be fully digital
- Bids will be submitted through an online portal
- Oversight will involve NEITI and other agencies
- The round will strictly comply with the Petroleum Industry Act (2021)
Five-Stage Bidding Process
The licensing round follows:
- Registration and pre-qualification
- Data acquisition
- Technical bid submission
- Evaluation
- Commercial bid conference
Investment Goal
The round, officially launched December 1, 2025, targets ten billion dollars in new upstream investments.
Industry players such as Chevron and TotalEnergies have already indicated interest.
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Bigger Strategy
The regulator describes the exercise as more than a bid round, calling it a strategic reset of Nigeria’s upstream sector to align with global investment realities and long-term value creation.
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