Strict participation guidelines for the 2025 licensing round were released yesterday by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). These guidelines restrict each bidder to a maximum of two oil and gas blocks and shift the emphasis from speculative acquisitions to operators with demonstrated financial stability and technical depth.
The new framework is intended to improve development results, speed up production, and bring Nigeria’s upstream sector into line with international best practices, according to the regulator who made these statements during the 2025 licensing round pre-bid webinar.
According to the commission’s standards, bidders who can unequivocally show that they have the technical know-how to manage the assets and the financial resources to support exploration and development activities all the way to the first oil or gas will be given precedence.
The NUPRC claims that the days of storing assets lacking clear funding plans or work programs are past and that block allocation will henceforth be determined by the capacity to add value to the economy and industry rather than just by aggressive bidding.
Oritsemeyiwa Eyesan, the Chief Executive of the Commission, stated during the virtual event that only candidates with solid financial and technical qualifications will advance to the crucial phase of the bidding process for the 50 blocks.
The procedure consists of five steps: pre-qualification and registration, data collection, technical bid submission, assessment, and a commercial bid conference. Only those with solid financial and technical qualifications, professionalism, and realistic plans advance. A transparent, merit-based process is used to select winners, she emphasized.
Signature bonuses for the 2025 licensing round are now set within a value range that lowers entry barriers and gives more weight to what really matters: technical capability, credible work programs, financial strength, and the ability to deliver production within the shortest amount of time, according to the NUPRC chief executive, with President Bola Tinubu’s approval.
Additionally, the commission established strict financial requirements for winning bidders, mandating that signature bonuses be paid within sixty days of the offer letter’s issue, failing which the award would expire. In an attempt to strike a compromise between investor entrance costs and the requirement to obtain significant commitments, it further stated that one-time payments for the blocks have been set between $3 million and $7 million, depending on asset categorization.
The chief executive of NUPRC said, “This has been done to increase competitiveness and in response to capital mobility.”
According to Eyesan, the licensing round is an open appeal for dedicated partners who are prepared to make financial investments, contribute technical expertise, and expedite Nigeria’s assets from license award to exploration, appraisal, and eventually full production.
Nigeria is “ready to be the beautiful bride to capital and playroom for advanced technological deployment for hydrocarbon recovery,” she emphasized, reiterating the commission’s commitment to an open licensing round.
“50 oil and gas blocks throughout Nigeria are available in this licensing round, allowing investors to access the country’s key basins and create long-term value,” she continued.
Eyesan also gave the public assurances that the bid process would adhere to the Petroleum Industry Act (PIA), encourage the use of digital tools for easy data access, and be subject to institutional and public scrutiny via the Nigeria Extractive Industries Transparency Initiative (NEITI) and other oversight organizations.
“Let me stress that this is not only a bidding process for the Nigeria 2025 license round. The head of NUPRC stated, “It is a clear signal of a reimagined upstream sector, anchored in the rule of law, driven by data, aligned with global investment realities, and focused on long-term value creation.”
In order to assist investors in navigating uncertainty and functioning within a framework that is transparent, predictable, and purposefully created to inspire confidence, NUPRC subject matter experts presented the guidelines, model contracts, bid parameters, and evaluation criteria during the webinar.
During his presentation, Mr. Augustine Okwah, Head of the NUPRC’s Alternative Dispute Resolution Centre (ADRC), mentioned that any bidder who receives an offer is required by the guidelines to pay within 60 days.
Additionally, he clarified that bidders will be limited to two oil and gas blocks and that the commission will not take anything beyond that into consideration.
The offer letter will outline the prerequisites that the successful bidder must meet before the minister issues the license. As part of the condition precedent, the signing bonus must be paid within sixty days of the offer letter’s issuance. Your job commitment guarantee will be included.
After that, you must provide a performance bond to ensure that you fulfill your employment duty. Naturally, you must also provide proof that you paid your rent within the first year. The commission will then invite the reserve bidder to fulfill these requirements if the winning bidder is unable to do so within these ninety days, and if the winning bidder is not able to do so, the offer made to the winning bidder will expire,” he said.
Importantly, he clarified that if a successful bidder runs under a concessional contract arrangement, the government will have the ability to seize up to 60% of the asset at any point during its lifetime, with the NNPC acting on the government’s behalf.
“The general license condition refers to the general terms and conditions of the license that you must follow while the license is pending. Naturally, the bid is for a maximum of two blocks.” “Those extra submissions will not be considered if you bid for any blocks beyond these two blocks,” he clarified.
He claims that any successful bidder who does not fulfill his duties will have their offers canceled in accordance with the PIA, and the cancelled participating interest will be divided among the other members who are not in default.
Additionally, Dr. Amba Ndoma-Egba, Deputy Director of Lease Administration, Exploration and Acreage Management, stated in his submission that the bid round’s goals include guaranteeing energy sufficiency, increasing gas utilization, broadening opportunities, and drawing in international investment.
“In addition to the established Niger Delta Basin, we have the Sokoto Basin, the Chad Basin, the Benue Trough, the Bida Basin, the Anambra Basin, and the Benin Basin. Five of the seven basins will be involved in this licensing round, he said.
He reaffirmed that the signature bonus will be between $3 million and $7 million, stressing that the commission has the authority to decide how much of the bond will be awarded in relation to the work program commitment.
“The signature bonus falls within a range,” the CCE stated in her remarks. Version 16 of the Petroleum Industry Act of 2021 will be used to evaluate our range, which is between $3 million and $7 million. The percentage of the bond that will be awarded in relation to the work program commitment will be decided by the Commission, he said.
