Nigeria Launches Major Oil Licensing Round with 50 Blocks Available
The Federal Government of Nigeria, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has officially opened bidding for 50 oil and gas blocks in a significant new licensing round for 2025. This strategic move aims to attract substantial investment while ensuring only qualified participants enter the country's upstream petroleum sector.
Strict Requirements for Prospective Investors
The commission has established rigorous criteria for participation, emphasizing that only companies with strong financial backing and proven technical expertise will be considered. NUPRC Chief Executive Oritsemeyiwa Eyesan made this clear during a recent pre-bid webinar, stating that the upstream sector represents serious business requiring long-term commitment.
"This upstream sector is serious business," Eyesan declared. "It is for long-term investment, and it is an open invitation to partnership, transparency, and shared responsibility as we work together to shape the next phase of Nigeria's upstream oil and gas industry."
She further emphasized that only candidates with strong technical and financial credentials, professionalism, and credible plans will move forward in the selection process.
Five-Stage Merit-Based Selection Process
The licensing round will follow a comprehensive five-stage system designed to ensure fairness and transparency:
- Registration and pre-qualification of interested companies
- Data acquisition phase for detailed geological information
- Technical bid submission by qualified participants
- Evaluation of all submitted proposals
- Commercial bid conference to finalize agreements
Digital tools will be deployed throughout the process to enhance transparency and ensure compliance with the Petroleum Industry Act (PIA) of 2021. The commission has committed to maintaining open scrutiny through established oversight agencies including the Nigeria Extractive Industries Transparency Initiative (NEITI).
Strategic Distribution and Investment Targets
The 50 blocks being offered are strategically distributed across five of Nigeria's seven sedimentary basins, providing investors with access to both frontier exploration areas and mature production terrains. This diverse offering is designed to accommodate various investment strategies and technical capabilities.
Signature bonuses for the blocks have been set at reasonable levels ranging from $3 million to $7 million, a move intended to reduce entry barriers while still prioritizing technical capability and credible work programs. The commission expects this approach to attract serious, long-term investors capable of contributing to Nigeria's energy security goals.
Amber Ndoma-Egba, NUPRC Director of Lease Administration, Exploration and Acreage Management, confirmed that technical evaluations will focus on multiple critical factors including subsurface understanding, exploration work programs, development concepts, sustainability plans, host community engagement strategies, and lifecycle management approaches.
"Technically weak firms will not scale through this process," Ndoma-Egba stated unequivocally, highlighting the commission's commitment to quality over quantity in participant selection.
Economic Impact and Sector Context
The 2025 licensing round represents a significant opportunity for Nigeria's petroleum sector, with the NUPRC projecting approximately $10 billion in new investments. This comes at a time when Nigeria's crude oil production has shown positive momentum, reaching an average of 1.71 million barrels per day in July 2025 according to recent commission data.
The licensing initiative aims to eliminate speculative participation while repositioning Nigeria's upstream sector as a transparent, rules-based destination for serious international investment. By focusing on technical competence and financial capacity, the government hopes to attract partners who can contribute to sustainable development and increased production capacity.
Winning bidders will be selected based on a weighted combination of technical and commercial scores, ensuring that both operational capability and economic viability receive appropriate consideration in the final selection process.
