Nigeria Launches Competitive Bidding for 50 Oil and Gas Blocks to Boost Upstream Sector

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the authoritative body overseeing upstream oil and gas activities in Nigeria, has unveiled a major licensing round, opening 50 oil and gas blocks across the country for competitive bidding. This initiative invites participation from both local and international investors, marking a significant opportunity in Africa’s leading crude oil producer.

Comprehensive Block Offerings Across Diverse Geological Zones

Approved by President Bola Ahmed Tinubu and launched on December 1, 2025, this licensing round represents one of the most extensive acreage releases in recent memory. The available blocks span onshore, shallow water, and deepwater environments, covering five of Nigeria’s seven sedimentary basins. These include both frontier areas with untapped potential and mature fields with established production histories, offering a broad spectrum of exploration and development prospects.

Transparent and Competitive Bidding Process Designed to Attract Serious Investors

NUPRC has emphasized a meritocratic and transparent bidding framework to ensure that only committed and capable operators advance through the selection stages. During pre-bid webinars and stakeholder engagements, NUPRC CEO Oritsemeyiwa Eyesan highlighted the importance of attracting investors with proven operational integrity and long-term commitment, discouraging speculative bids that do not contribute to sustainable development.

“The upstream oil and gas sector demands serious, long-term investment. We extend an open invitation for partnership, transparency, and shared responsibility as we collaboratively shape the future of Nigeria’s upstream industry,” Eyesan stated.

The structured bidding process includes pre-qualification, registration, data acquisition, technical bid submission, evaluation, and a commercial bid conference. Bidders are required to present clear, actionable plans for rapid progression from award to exploration, appraisal, and production phases.

To lower entry barriers while maintaining high standards, the signature bonus-a one-time payment upon award-has been reduced to a range of $3 million to $7 million per block, payable within 60 days of offer letter issuance. Additionally, to promote wider participation and ensure blocks are awarded to operators capable of driving development, each bidder is limited to a maximum of two blocks.

Strategic Objectives: Enhancing Reserves, Production, and Energy Security

According to Eyesan, this licensing round transcends a mere land sale; it is a strategic effort to bolster Nigeria’s hydrocarbon reserves, increase crude output, and strengthen national energy security amid a dynamic global investment landscape. Transparent entry criteria and robust governance are critical to attracting sustainable capital as energy markets face tightening supply and shifting demand patterns.

The NUPRC reaffirmed its commitment to the Petroleum Industry Act (PIA) 2021, ensuring regulatory oversight and public accountability. Monitoring by entities such as the Nigeria Extractive Industries Transparency Initiative (NEITI) will continue to safeguard industry integrity and transparency.

Outlook: Nigeria’s Upstream Sector Poised for Renewed Investment and Growth

The 2025 licensing round is expected to draw billions of dollars in new investments, with several major multinational oil companies already signaling interest under the revised terms. This round serves as a critical test of Nigeria’s ability to balance attractive fiscal policies with technically sound project selections in a global environment increasingly focused on disciplined, value-driven investments.

As bid evaluations progress over the coming months, industry analysts will closely monitor the outcomes to gauge Nigeria’s success in revitalizing its upstream oil and gas sector for long-term, sustainable growth.