In a bid to attract new capital and revive its energy sector, Nigeria has significantly lowered financial barriers for its latest oil licensing round, offering 50 exploration blocks with sharply reduced signature bonuses.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the new terms, setting signature bonuses between $3 million and $7 million—a major drop from the $10 million required in 2024 and a fraction of the historical highs near $200 million.
The move aims to shift the competitive focus from upfront cash payments to technical expertise and production speed.
NUPRC Chief Executive, Oritsemeyiwa Eyesan, framed the round as a “strategic intervention” to boost Nigeria’s oil output from 1.5 million barrels per day to a target of 2.7 million by 2027. She assured potential investors of a “transparent, predictable” process under the Petroleum Industry Act (PIA).
“The upstream sector is serious business. It is for long-term investment, and it is an open invitation to partnership,” Eyesan stated during a pre-bid webinar.
She emphasized that winners will be chosen through a merit-based system prioritizing technical competence, credible work programs, and financial strength.
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To bolster confidence, the commission stated the entire bidding process will be fully digital and subject to oversight by the Nigeria Extractive Industries Transparency Initiative (NEITI).
The blocks on offer span 15 onshore assets, 19 in shallow water, 15 in frontier basins, and one deepwater block.
Major industry players like Chevron and TotalEnergies have already expressed interest in the round, which the government hopes will attract up to $10 billion in new investments.
While lowering upfront costs, the NUPRC outlined strict technical evaluation criteria and exploration timelines—three years for onshore and five for deepwater and frontier blocks. The regulator’s director, Amber Ndoma-Egba, warned that “technically weak firms will not scale through.
The licensing round represents Nigeria’s concerted effort to reposition itself in a competitive global market for mobile capital, using regulatory clarity and reduced entry fees as its primary incentives.
