The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced on Monday that signature bonuses for oil blocks in the ongoing 2025 petroleum licensing round have been fixed between $3 million and $7 million.
According to a statement from the Commission, the adjustment is aimed at reducing traditional entry barriers and aligns with global standards.
In 2024, the government had already cut signature bonuses from about $200m to $10m. NUPRC noted that deepwater investments would attract a $10m signature bonus, while shallow water and onshore assets would require $7m.
Gbenga Komolafe, Chief Executive of the Nigerian Upstream Regulatory Commission, explained that a review of signature bonus demands in countries such as Brazil showed the need to further lower Nigeria’s rates.
A signature bonus is a non-refundable payment made to the government upon signing an agreement, and companies awarded oil or gas assets are required to pay it.
NUPRC stated that the current licensing round aims to increase national oil and gas output, expand gas utilisation, generate employment, and deliver value to both government and investors. Broader goals include growing reserves, enhancing Nigerian content, attracting Foreign Direct Investment, and supporting long-term global energy stability.
Winners of the 50 Petroleum Prospecting Licenses (PPLs) will be entitled to evacuate and dispose of crude oil or natural gas produced during exploration or appraisal well tests.
The Commission outlined all 50 blocks on offer, spanning onshore, shallow water, and deep offshore territories.
The licence will initially run for three years, with the possibility of an additional three-year extension for onshore and shallow water areas, and five years for deepwater and frontier assets. The entire licensing process is scheduled to run from November 17, 2025, to July 17, 2026.
NUPRC clarified that the exercise is open to both local and foreign companies. While foreign firms do not need to register in Nigeria to participate, they must be registered under the Companies and Allied Matters Act (CAMA) before a PPL can be awarded.
It added that applicants may be disqualified if they are indebted to the government, have previously failed to operate awarded licences effectively, or become insolvent, among other criteria.
All bidders must submit offers within the approved $3–$7 million range. Any bids below this threshold will be considered non-compliant and excluded from evaluation.
The Commission also stated that entities must meet minimum financial requirements, including an average annual turnover of $100 million for deep offshore blocks and $40 million for onshore and shallow water blocks.
Additionally, NUPRC dismissed claims that it was withholding the Frontier Exploration Fund (FEF) from Nigerian National Petroleum Company Limited (NNPC Ltd). Eniola Akinkuotu, Head of Media and Strategic Communication, explained that $185,123,333 and N14.9 billion had been approved, adding that the funds are held in a Central Bank of Nigeria (CBN) account, not by the Commission.
NUPRC clarified that its role is to assess NNPC’s Work Programme and approve funds based on verified activities and awarded contracts. The Commission also revealed that PwC had been engaged to review NNPC’s claims to ensure transparency.
The statement added that the Minister of State for Petroleum, Senator Heineken Lokpobiri, had already issued a rebuttal denying any investigation into NUPRC regarding the fund, stressing that references to such claims were misleading.