Nigerian govt reduces oil block entry costs as 2025 licensing round begins

The Federal Government has further reduced the signature bonus for oil block bidders to between $3 million and $7 million as part of efforts to attract more investors ahead of the 2025 licensing round.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the adjustment in an update on its website, explaining that the move is aimed at lowering entry barriers for prospective investors.

“Interested in one of the oil blocks listed for the 2025 Licensing Round? The Nigerian government has graciously reduced the signature bonus to between $3m and $7m,” the commission said.

It added that all bidders must submit offers within this approved range.

This marks another downward review after the government cut signature bonuses from about $200 million to $10 million in 2024. NUPRC Chief Executive, Gbenga Komolafe, had said the reduction followed a survey of global industry practices, including benchmarks in countries like Brazil.

According to NUPRC, a total of 50 oil blocks are on offer across onshore, shallow water, and deep offshore terrains, including 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.