The Federal Government of Nigeria has unveiled plans to boost investment in the country's upstream oil sector with the announcement of the 2026 oil licensing round. The Nigerian Upstream Petroleum Regulatory Commission, led by its Chief Executive Officer, Oritsemeyiwa Eyesan, revealed that 40 blocks are on offer across various terrains, including land, shallow water, and deepwater. These blocks are open to investors with the required technical competence, financial capacity, and commitment to develop Nigeria's petroleum resources.
The announcement follows the approval of President Bola Tinubu and the Minister of Petroleum Resources. According to Eyesan, the new bidding guidelines will require the disclosure of the beneficial owners of every bidder, while the evaluation methodology and results of the exercise will be published more fully. This move aims to enhance transparency and predictability in the licensing process, making Nigeria a more attractive destination for upstream investment.
The 2026 licensing round builds on the success of previous rounds, including the 2025 exercise, which attracted significant interest from local and international oil companies. In the 2025 round, 143 companies submitted 200 bids, with 31 companies emerging as winners of 37 blocks. The NUPRC has conducted three licensing exercises since the Petroleum Industry Act came into force in 2021, resulting in the award of 57 Petroleum Prospecting Licences.
The Commission's Chief Executive Officer emphasized that the award of petroleum acreage should no longer be discretionary, but rather based on transparent and competitive bidding. Eyesan highlighted that the Petroleum Industry Act 2021 has brought about significant reforms, including the requirement for clear rules and competitive bidding for the award of Petroleum Prospecting Licences and Petroleum Mining Leases.
The NUPRC plans to incorporate lessons from previous licensing rounds, including recommendations from the Nigeria Extractive Industries Transparency Initiative, into the 2026 process. The guidelines will set out the evaluation methodology, provide for fuller publication of results, and require disclosure of beneficial owners of every bidder. The Commission also aims to strengthen communication with prospective bidders through its licensing website and portal, virtual data room, webinars, and a dedicated help desk.
The 2026 licensing round is expected to support Nigeria's efforts to raise crude oil and condensate production and expand gas reserves. The assets offered in previous licensing exercises are expected to contribute significantly to the country's production target, adding about 500 million barrels of reserves and at least 300,000 barrels per day of crude oil and condensate production within five years.
Successful bidders will be required to develop the assets, with Eyesan warning that winning a licence comes with an obligation to do so. Full details of the blocks, qualification requirements, and participation procedures will be published on the Commission's website and dedicated licensing portal in the coming days. The Commission has urged Nigerian and international investors to participate in the exercise.
Key points
- The Nigerian government has announced the 2026 oil licensing round, offering 40 blocks to investors.
- The new bidding guidelines will require the disclosure of beneficial owners of every bidder.
- The 2026 licensing round aims to support Nigeria's efforts to raise crude oil and condensate production and expand gas reserves.
