Nigeria is reducing entry costs for its latest oil licensing round and introducing independent oversight measures to strengthen transparency, as Africa’s largest crude producer works to raise output and attract fresh investment, its oil regulator said.
The country launched its delayed 2025 licensing round last month, offering a total of 50 oil and gas blocks, including 15 onshore assets, 19 shallow-water blocks, 15 frontier basin blocks and one deepwater block.
Nigeria has also indicated that licensing rounds will now be conducted annually.
The round forms a key part of the government’s strategy to increase crude oil production to 2.7 million barrels per day by 2027 from the current level of about 1.5 million barrels per day, while boosting government revenues, reserves and investment inflows.
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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has lowered the signature bonus, or sign-on fee, for the 2025 round to a range of between $3 million and $7 million, officials said during a presentation to potential investors on Wednesday, as seen on Reuters.
This represents a reduction from $10 million in 2024 and is far below the roughly $200 million required several years ago.
The NUPRC said the revised fee structure is intended to reduce barriers to entry and place greater emphasis on technical competence, credible work programmes, financial capacity and the ability to deliver production quickly.
Chevron (CVX.N) said in December that it would participate in the auction, while TotalEnergies (TTEF.PA) has also expressed interest.
NUPRC chief executive Oritsemeyiwa Eyesan told investors that the changes to the round, the first she will oversee since her appointment in December, are designed to provide a stable and predictable regulatory environment.
“You are not navigating uncertainty, you are operating with a framework that is transparent, predictable and deliberately designed to inspire confidence,” she said.
To further enhance transparency, the regulator said the licensing round will be monitored by its NEITI watchdog, which is part of the global Extractive Industries Transparency Initiative, alongside other government agencies.
The regulator added that the entire licensing process will be fully digital, allowing investors to access data and submit bids through an online portal.
It has also introduced incentives for new gas-only developments, deepwater projects and measures aimed at improving cost efficiency.
Nigeria, which depends heavily on oil for most of its export earnings, is seeking to revive output after years of underinvestment and persistent security challenges in the oil-producing Niger Delta.
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