NUPRC Opens 50 Oil Blocks for Bidding to Attract Serious Investors, Boost Energy Security
Nigeria has formally opened 50 oil and gas blocks for competitive bidding as part of its 2025 petroleum licensing round, signalling a renewed push to attract technically competent and financially capable investors into the upstream sector.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the development during a pre-bid webinar, where it unveiled the regulatory framework, evaluation benchmarks, and revised commercial terms guiding the process.
The commission stressed that speculative bidders would be eliminated, as Nigeria seeks long-term partners capable of driving exploration, production growth, and energy security.
NUPRC opens 50 oil blocks for bidding under merit-based framework
The Chief Executive of the NUPRC, Oritsemeyiwa Eyesan, described the exercise as a strategic intervention designed to reposition Nigeria’s upstream oil and gas sector as a transparent, rules-based investment destination amid intense global competition for capital.
According to Eyesan, the commission has adopted a strictly merit-based system that prioritises technical expertise, financial capacity, and credible development plans over aggressive cash bids.
“This upstream sector is serious business. It is built on long-term investment and shared responsibility. Only firms with strong technical and financial credentials will progress from award to exploration, appraisal, and ultimately full production,” she said.
The 50 oil and gas blocks on offer are spread across five of Nigeria’s seven sedimentary basins, offering investors access to both frontier and mature hydrocarbon provinces.
These include the Niger Delta Basin, Chad Basin, Benue Trough, Anambra Basin, and Bida Basin.
Lower entry barriers, stronger technical focus
To improve competitiveness and attract serious investors, the NUPRC disclosed that signature bonuses for the 2025 licensing round have been significantly revised.
With the approval of President Bola Tinubu, signature bonuses have been pegged between $3m and $7m, a move aimed at reducing entry barriers while discouraging speculative participation.
Eyesan explained that the revised structure places greater emphasis on technical capability, credible work programmes, and speed to production, rather than purely financial bids.
“As global capital becomes more mobile, Nigeria must compete intelligently. The focus is no longer on who pays the most upfront, but who can deliver sustainable production in the shortest possible time,” she said.
The NUPRC boss added that the new commercial terms reflect the realities of a rapidly evolving global energy landscape, where investors are increasingly cautious and selective.
Transparent, PIA-compliant bidding process
The commission outlined a five-stage bidding process comprising registration and pre-qualification, data acquisition, technical bid submission, evaluation, and a commercial bid conference.
Eyesan stressed that the entire exercise would strictly comply with the Petroleum Industry Act (PIA) 2021, with digital platforms deployed to ensure transparency, accountability, and public scrutiny.
“All licensing materials have been available on our portal since December 1, 2025. The process will remain open to oversight by NEITI and other relevant institutions to guarantee credibility,” she said.
The NUPRC also established dedicated support channels to promptly address investor enquiries throughout the bidding window.
Basins, work programmes, and evaluation criteria
Providing further technical insights, the Director of Lease Administration, Exploration and Acreage Management at the NUPRC, Amber Ndoma-Egba, said the evaluation would focus heavily on bidders’ understanding of subsurface geology, exploration strategies, development concepts, and sustainability plans.
“We assess your subsurface evaluation, exploration work programme, development and production concept, evacuation planning, sustainability, decarbonisation objectives, and host community development plans.
Technically weak firms will not scale through,” Ndoma-Egba stated.
He noted that although Nigeria has seven sedimentary basins, the current licensing round spans five, covering both frontier and producing areas to balance exploration risk and investment returns.
On commercial safeguards, Ndoma-Egba disclosed that the commission had approved a minimum work performance security of one per cent, though bidders may voluntarily increase this to improve their technical scores.
Exploration timelines have also been clearly defined, with onshore assets allotted an initial exploration period of three years, while deepwater and frontier blocks will have up to five years.
Strategic signal to global investors
The NUPRC emphasised that the 2025 licensing round is not merely a routine bidding exercise but a deliberate signal to global investors that Nigeria’s upstream sector has been restructured for long-term value creation.
The commission estimates that the exercise could unlock up to $10bn in new investments, drive reserve replacement, and strengthen Nigeria’s energy security at a time of tightening global supply.
“This licensing round reflects a reimagined upstream sector—anchored on the rule of law, driven by data, aligned with global investment realities, and focused on sustainable value creation,” Eyesan concluded.
