The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has unveiled a stricter framework for the 2025 oil and gas licensing round, limiting each bidder to a maximum of two blocks and prioritizing companies with proven technical expertise and financial capacity.
At a pre-bid webinar on Wednesday, the regulator emphasised that the new guidelines are designed to accelerate production, ensure sustainable development outcomes, and align Nigeria’s upstream sector with global standards.
“The era of warehousing assets without clear work programmes or funding plans is over,” said NUPRC Chief Executive, Oritsemeyiwa Eyesan.
“Block allocation will no longer be driven solely by aggressive bidding but by the ability to deliver real value to the industry and the economy.”
The commission said preference would be given to bidders who could demonstrate the technical capacity to operate the blocks and the financial resources to fund exploration and development up to first oil or gas.
The 2025 round woukd make 50 blocks available across Nigeria, covering five of the country’s seven sedimentary basins, including the Sokoto, Chad, Benue, Bida, Anambra, Benin, and Niger Delta basins.
“This licensing round is an open call for committed partners ready to invest capital, bring technical excellence, and move assets from license award to exploration, appraisal, and full production,” Eyesan added.
The licensing process will follow a five-step framework: registration and pre-qualification, data acquisition, technical bid submission, evaluation, and a commercial bid conference.
Only applicants with credible plans, professionalism, and strong credentials will advance.
With presidential approval, the signature bonuses for this licensing round have been set between $3 million and $7 million depending on asset classification.
Bidders must make full payment within 60 days of receiving an offer letter, or the award will lapse.
“This range reduces entry barriers while placing greater emphasis on technical capability, credible work programmes, financial strength, and the ability to deliver production quickly,” Eyesan said.
Winning bidders would also be required to submit a performance bond guaranteeing work commitments, and provide evidence of payment for the first year’s rent.
Those failing to meet these conditions within 90 days will have their offers revoked, with reserve bidders given the opportunity to take over.
Concessional Contracts and Government Participation
The NUPRC clarified that under concessional contracts, the government reserves the right to hold up to 60 percent of the asset through NNPC participation during the license period.
“If a bidder operates on a concessional arrangement, the government can barge into the asset at any time, up to 60 percent, which will be held on behalf of the country by NNPC,” explained Augustine Okwah, Head of NUPRC’s Alternative Dispute Resolution Centre.
Okwah stressed that any bids for more than two blocks will not be considered, and defaulting bidders will have their interests redistributed to other non-defaulting participants in line with the Petroleum Industry Act (PIA).
Deputy Director of Lease Administration, Exploration, and Acreage Management, Dr. Amba Ndoma-Egba, outlined the strategic objectives of the licensing round, which included ensuring energy sufficiency, expanding gas utilisation among others.
“This is not just a bidding exercise; it is 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,” Eyesan said.
The NUPRC confirmed that the licensing process will comply with the PIA, incorporate digital tools for efficient data access, and remain open to public and institutional oversight through NEITI and other regulatory bodies.
The regulator’s emphasis on transparency, merit, and technical competence marks a clear shift from previous rounds, sending a strong signal that Nigeria is seeking serious partners capable of delivering both investment and results in the oil and gas sector.
