The Federal Government has issued a stern warning to oil and gas companies holding undeveloped oil blocks, stating it is prepared to withdraw their licences for non-performance. This move aims to enforce strict development timelines within Nigeria's crucial upstream petroleum sector.
Licences Are Not for Prestige, Says Minister
The Minister of State for Petroleum Resources, Heineken Lokpobiri, delivered the warning on Wednesday, January 14, 2026, during the Licensing Round Pre-bid Conference in Lagos. Lokpobiri emphasised that oil exploration licences are not status symbols or prestige assets to be held indefinitely.
He revealed that some companies have held oil blocks for up to 20 years without meaningful development, a practice the government will no longer tolerate. The minister stressed that the era of sitting on strategic national assets without adding value is over.
No Refunds for Revoked Assets
In a significant declaration, Minister Lokpobiri made it clear that any licence revoked due to non-development will not attract a refund of the signature bonuses or bid fees already paid by the investors. This underscores the financial risk for non-performing licence holders.
He also warned prospective bidders in the ongoing licensing round that post-bid adjustments will not be permitted, urging strict compliance with all published guidelines from the outset.
Nigeria Remains a Prime Investment Destination
Despite the global energy transition, Lokpobiri affirmed that Nigeria remains an attractive and mature destination for oil and gas investments. This sentiment was echoed by the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan.
Eyesan stated that Nigeria is Africa's preferred energy investment hub and highlighted the growing role of indigenous companies and local banks in the sector. She advised investors to collaborate closely with Nigerian financial institutions during the licensing process.
A key revelation was that many of the 50 oil blocks currently on offer were recovered through the implementation of the Petroleum Industry Act (PIA). The blocks span onshore, shallow water, and deep offshore locations across various Nigerian basins.
In a related development, Eyesan announced a reduction in entry costs, including revised signature bonuses, for the current bid round to further stimulate investment.
The government's firm stance signals a new era of accountability and performance in Nigeria's oil and gas industry, aiming to unlock the nation's vast hydrocarbon resources for economic growth.
