The Nigerian government has officially launched a new oil and gas licensing round, introducing significantly lower signature bonuses in an effort to revive investment in a sector that has experienced a prolonged slowdown.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced that signature bonuses for the new licensing cycle have been reduced to between 3 million and 7 million US dollars per block. This represents a substantial decrease compared to previous licensing rounds, where fees were considerably higher, and is intended to lower financial barriers for prospective investors.
According to the regulator, the revised framework seeks to attract a broader range of participants, including medium-sized and indigenous companies, while shifting the focus of the bidding process toward technical competence, financial capacity and realistic work programmes rather than purely financial offers.
A total of 50 oil and gas blocks are being offered in this round, covering onshore areas, shallow offshore zones and underexplored sedimentary basins across the country. The blocks are located in key basins such as the Niger Delta, Anambra, Chad, Benue Trough and Bida basins, offering varied geological prospects to potential investors.
The NUPRC stated that the licensing process will follow a transparent and competitive structure, in line with the Petroleum Industry Act of 2021. The process includes stages for prequalification, data acquisition, technical evaluation and commercial bidding, with digital tools deployed to enhance transparency and accountability.
Officials noted that the decision to reduce signature bonuses aligns with the federal government’s broader objective of repositioning Nigeria’s upstream petroleum sector to attract long-term investment, boost production capacity and improve energy security amid increasing global competition for capital.
The licensing round comes at a time when Nigeria is seeking to reverse declining investment levels in its oil and gas industry, despite remaining one of Africa’s leading hydrocarbon producers. Authorities hope the new approach will stimulate exploration activity, accelerate field development and strengthen the sector’s contribution to the national economy.
