The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has unveiled a tougher participation framework for the 2025 oil and gas licensing round, restricting bidders to a maximum of two blocks and prioritising companies with proven technical competence and financial capacity.
The new rules were announced on Wednesday during the commission’s 2025 Licensing Round pre-bid webinar, where regulators signalled a decisive shift away from speculative asset acquisitions toward operators capable of taking blocks from award to production within the shortest possible time.
Under the guidelines, access to the 50 oil and gas blocks on offer will no longer be driven solely by aggressive commercial bids. Instead, preference will be given to bidders that can clearly demonstrate the technical expertise to operate the assets and the financial strength to fund exploration and development activities through to first oil or gas.
The commission stressed that the era of warehousing oil blocks without credible work programmes or funding plans has ended, noting that future allocations will be based on the ability to deliver tangible value to the industry and the wider economy.
Speaking at the virtual event, NUPRC Chief Executive, Engr. Oritsemeyiwa Eyesan, said only applicants with strong technical and financial credentials would advance to the critical stages of the process.
“The process follows five steps: registration and pre-qualification, data acquisition, technical bid submission, evaluation, and a commercial bid conference. Only candidates with strong technical and financial credentials, professionalism and credible plans will proceed. Winners will emerge through a transparent, merit-based procedure,” she said.
Eyesan disclosed that, with the approval of President Bola Ahmed Tinubu, signature bonuses for the 2025 round have been set within a defined range to lower entry barriers while placing greater emphasis on operational capacity and delivery timelines. One-off payments for the blocks have been pegged between $3 million and $7 million, depending on asset classification.
According to her, the revised pricing structure reflects capital mobility realities and is intended to improve competitiveness while ensuring only serious investors participate.
“This licensing round is an open call for committed partners—those ready to deploy capital, apply advanced technology and accelerate Nigeria’s assets from license award to exploration, appraisal and full production,” she said.
The commission also imposed strict financial conditions on successful bidders, directing that signature bonuses must be paid within 60 days of the issuance of an offer letter, failing which the award will automatically lapse.
Eyesan reaffirmed NUPRC’s commitment to transparency, noting that the entire bid process will comply with the Petroleum Industry Act (PIA), leverage digital platforms for data access and remain open to oversight by the Nigeria Extractive Industries Transparency Initiative (NEITI) and other relevant institutions.
“Nigeria is ready to be the beautiful bride to capital and a playroom for advanced technological deployment for hydrocarbon recovery,” she said, adding that the 50 blocks on offer span key sedimentary basins across the country.
She described the 2025 licensing round as more than a bidding exercise, calling it “a clear signal of a re-imagined upstream sector, anchored in the rule of law, driven by data, aligned with global investment realities and focused on long-term value creation.”
Providing further clarification, the Head of NUPRC’s Alternative Dispute Resolution Centre (ADRC), Mr. Augustine Okwah, said bidders would be strictly limited to two oil and gas blocks, with any additional submissions automatically disqualified.
He explained that offer letters would spell out conditions precedent for licence issuance, including payment of the signature bonus within 60 days, submission of work commitment guarantees, performance bonds, and evidence of rent payment for the first year.
“If a winning bidder fails to meet these conditions within the stipulated 90 days, the offer lapses without recourse, and the reserve bidder will be invited,” Okwah said.
He added that under certain concessional contract arrangements, government reserves the right to acquire up to 60 per cent participating interest, to be held by the Nigerian National Petroleum Company Limited (NNPC Ltd), during the lifespan of the asset.
Also speaking, the Deputy Director, Lease Administration, Exploration and Acreage Management, Dr. Amba Ndoma-Egba, said the licensing round aims to boost energy sufficiency, expand gas utilisation, attract foreign investment and create new opportunities across Nigeria’s basins.
According to him, the round will cover assets in the Sokoto, Chad, Benue Trough, Bida, Anambra, Benin and Niger Delta basins, spanning five of the country’s seven sedimentary basins.
He reiterated that the signature bonus range of $3 million to $7 million will be assessed in line with the Petroleum Industry Act 2021, with the commission retaining the discretion to determine the percentage of performance bonds required for work programme commitments.
During the webinar, NUPRC experts also outlined bid parameters, model contracts and evaluation criteria, assuring investors of a transparent, predictable and investor-friendly framework designed to inspire confidence in Nigeria’s upstream sector.
