The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has intensified efforts to attract fresh capital into Nigeria’s oil and gas sector, engaging prospective bidders at a pre-bid conference for the 2025 Oil Licensing Round, where 50 oil and gas blocks are on offer.

The conference, held in Lagos on Wednesday, January 14, 2026, drew senior government officials, industry operators, financiers and sector groups, including the Oil Producers Trade Section (OPTS), Independent Petroleum Producers Group (IPPG), emerging indigenous companies and other stakeholders.

At the event, NUPRC Chief Executive, Engr. Oritsemeyiwa Eyesan, announced a significant reduction in the cost of entry into Nigeria’s upstream sector. The reforms include a downward review of signature bonuses and other fees payable by bidders before first oil, in line with the Federal Government’s drive to boost investment and production.

Chief Executive of NUPRC, Oritsemeyiwa Eyesan, at the pre-bidding conference in Lagos on Wednesday, Jan 14, 2026

Eyesan said the reforms were enabled by the Petroleum Industry Act (PIA), which has strengthened regulatory oversight and ensured that oil and gas assets are actively developed.
“The commission has made tremendous progress over the last few years, largely enabled by the PIA. One of its key outcomes is that assets can no longer remain idle. If you do not work your block, it will be taken from you, and many of the assets on offer today were recovered as fallow fields,” she said.
She added that lessons from previous licensing rounds informed the 2025 process, with a renewed focus on attracting technically competent operators capable of developing the assets efficiently.
“The cost to entry was previously prohibitive. We are pleased to announce that President Bola Ahmed Tinubu has approved a revision of the signature bonus, alongside adjustments to several charges payable prior to first oil. These reforms, combined with recent tax reforms, are designed to enable growth, expansion and long-term economic sustainability,” Eyesan stated.
On gas development, the NUPRC chief executive said government incentives were already yielding results, with several Final Investment Decisions (FIDs) reached. She noted that these developments would positively influence the ongoing bidding process and strengthen Nigeria’s position as a preferred energy investment destination.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, described the licensing round as a transparent and accountable process anchored firmly on the PIA. He warned against speculative acquisition of assets.
“These licenses are not status symbols. They are meant to be developed within a defined timeframe. Holding assets undeveloped for decades is no longer acceptable,” Lokpobiri said, adding that the PIA does not provide for refunds of bidding fees or signature bonuses.
Chairman of the Senate Committee on Upstream, Senator Eteng Williams, assured the commission of legislative support, stressing that Nigeria must urgently raise production levels under the Federal Government’s “Project One Million Barrels” initiative.

Experts React

Reacting to the developments, economist Celestine Ukpong described the reduction in entry costs as a “strategic and timely intervention” that could restore investor confidence in Nigeria’s upstream sector.
Ukpong noted that high upfront costs had discouraged both local and foreign investors in previous rounds.
“Lowering signature bonuses and pre–first oil fees sends a strong signal that Nigeria is serious about competing globally for upstream capital. If implemented transparently, this could translate into increased investment, job creation and improved foreign exchange earnings,” he said.
He added that effective enforcement of the PIA would be critical to ensuring that awarded assets are developed and contribute meaningfully to national output.
Similarly, Peter Adebayo, FCA, said the reforms would improve project bankability and attract financiers back into Nigeria’s oil and gas industry.
“From a financial perspective, reducing upfront costs significantly improves cash flow projections and internal rates of return for investors. This makes Nigerian assets more attractive to lenders and equity partners, especially in a global environment where capital is highly selective,” Adebayo explained.
He, however, stressed the importance of regulatory predictability and timely approvals, noting that investors would closely watch how NUPRC delivers on its commitments.
Beyond the licensing round, Eyesan also unveiled a broader upstream agenda anchored on three pillars: production optimisation and revenue expansion; regulatory predictability and speed; and safe, governed and sustainable operations. The agenda aligns with President Tinubu’s Renewed Hope Agenda and targets production of two million barrels per day by 2027 and three million barrels per day by 2030.
She disclosed that NUPRC will publish Service Level Agreements (SLAs) for major approvals, deploy digital workflows for permitting and reporting, and convene a monthly Chief Executive–Operators Leadership Forum to address systemic bottlenecks in approvals, production restoration, infrastructure integrity and gas monetisation.
“Going forward, the commission will be measured by faster and predictable approvals, higher and more sustainable production, disciplined acreage performance, world-class HSE outcomes, and credible data integrity,” Eyesan said.
The commission reaffirmed its commitment to building a transparent, efficient and investor-friendly upstream ecosystem capable of delivering sustainable growth and long-term economic value for Nigeria.

Nigeria’s upstream regulator, NUPRC, has cut entry costs and engaged investors over the sale of 50 oil and gas blocks in the 2025 licensing round, a move experts say could boost investment, production and economic growth.