The Nigerian government has reduced the signature bonus for oil block bidders to a range of $3 million to $7 million, as part of its efforts to attract more investors to the upcoming 2025 licensing round. This move aims to lower entry barriers for prospective investors, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The commission announced the adjustment on its website, stating that all bidders must submit offers within the approved range.
The reduction is the second in less than a year, following a cut from around $200 million to $10 million in 2024. The NUPRC Chief Executive, Gbenga Komolafe, had cited a survey of global industry practices, including benchmarks in countries like Brazil, as the basis for the initial reduction. The latest adjustment is expected to make Nigeria’s oil and gas sector more competitive in the global market.
A total of 50 oil blocks are on offer across onshore, shallow water, and deep offshore terrains. The blocks include PPL 2A29–PPL 2A62, PPL 2010, PPL 307, PPL 308, PPL 309, PPL 900–PPL 903, PPL 700–PPL 703, and PPL 800–PPL 803. The 2025 licensing round is a significant opportunity for investors to explore Nigeria’s oil and gas resources, with the government seeking to increase investment in the sector.
The reduction in signature bonuses is part of the government’s broader efforts to reform the oil and gas industry, making it more attractive to investors and increasing transparency. The NUPRC has been working to create a more favorable business environment, with the aim of boosting economic growth and development in the country.
The 2025 licensing round is expected to generate significant interest from international oil companies, as well as local players. The Nigerian government is keen to capitalize on the current global demand for oil and gas, and the reduced signature bonuses are seen as a key incentive for investors. As the licensing round gets underway, the government will be watching closely to see how the reduced entry costs impact investor interest and participation.