A strategic move aimed at revitalizing Nigeria’s petroleum industry and attracting foreign direct investment, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has confirmed its plan to license 220 unallocated oil blocks across the country’s onshore and offshore basins. This is in line with Section 7(t) of the Petroleum Industry Act (PIA) 2021, which mandates periodic bid rounds for the allocation of oil and gas assets.
According to NUPRC data reviewed by ireport247news.com, the available blocks are scattered across deep offshore terrains, the Benue Trough, Chad Basin, Sokoto Basin, Bida Basin, Anambra Basin, Niger Delta, and others—highlighting the country’s vast but underutilized hydrocarbon reserves.
“The 220 oil blocks are not abandoned. They are available for concession through upcoming bid rounds, and will be granted once conditions are met,” the Commission said in a statement on Wednesday.
Breakdown of Open Oil Blocks by Region
Deep Offshore: 59 blocks
Benue Trough: 41 blocks
Chad Basin: 40 blocks
Sokoto Basin: 28 blocks
Bida Basin: 16 blocks
Anambra Basin: 13 blocks
Onshore Niger Delta: 8 blocks
Benin Basin: 8 blocks
Offshore Niger Delta: 7 blocks
This licensing round comes at a crucial time for Nigeria, which continues to grapple with falling crude production, growing debt obligations, and a chronic inability to meet domestic refining demand due to crude shortages and underperforming refineries.
The deepwater terrain, which accounts for about 27% of the total open blocks in Nigeria and nearly 80% of open blocks in the prolific Niger Delta, remains underexplored. According to NUPRC, these offshore reserves contributed around 19% of Nigeria’s oil and 12% of its gas reserves as of January 2025.
Yet, significant barriers to entry—such as capital intensity, deep-sea technology requirements, and logistical complexity—continue to delay exploration and development. This mismatch between resource potential and actual output underscores the urgency of the licensing initiative.
“Unlocking Nigeria’s deepwater frontier is key to meeting long-term energy demands and securing economic resilience,” said a Lagos-based energy analyst, Dr. Ibrahim Danlami.
As part of the new approach, NUPRC published the concession status of 243 oil blocks, a step aimed at improving industry transparency in line with the Petroleum Industry Act (PIA). The agency also disclosed that 24 oil blocks were recently awarded as part of the 2022/2023 mini deepwater bid round and the 2024 licensing round.
Some licenses reportedly expired in June 2025, but updated guidance on their status is still pending.
“We are committed to ensuring that every step of the licensing process reflects transparency, accountability, and investor confidence,” the Commission added.
Nigeria’s high dependence on oil exports means that undeveloped and unlicensed oil blocks pose a real economic risk. The country’s public debt hit N149 trillion in Q1 2025, driven in part by reduced oil revenues and increased borrowing to finance subsidies and importation of refined fuel.
Despite owning four refineries, all of which are currently underperforming, Nigeria remains heavily reliant on imported petroleum products. This shortfall is largely due to insufficient crude supply to local refineries—an issue that would be mitigated by developing currently dormant oil blocks.
The Commission had earlier announced that the 2025 bid round would commence after preparatory activities conclude. Stakeholders anticipate that the process will attract both local and international investors looking to tap into Nigeria’s hydrocarbon riches, especially under a more reformed legal framework.
The Petroleum Industry Act (2021) is expected to simplify bureaucratic bottlenecks and provide fiscal incentives to improve investor participation.
As the Tinubu administration seeks to diversify revenue streams and stabilize the economy, unlocking the 220 oil blocks through competitive, transparent bid rounds may provide the spark Nigeria’s oil industry desperately needs.
If executed efficiently, this initiative could:
Boost national revenue
Reduce dependency on oil imports
Drive job creation
Attract cutting-edge technology and investment
Strengthen national energy security
The upcoming bid rounds will therefore be a litmus test for the effectiveness of Nigeria’s oil sector reforms and its commitment to maximizing the benefits of its vast petroleum resources.