By Juliet Ezeh
Nigeria’s upstream oil sector is witnessing renewed investor confidence as the country records strong interest from companies seeking to participate in the ongoing 2025 oil licensing round.
The process, supervised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has attracted an encouraging number of applicants despite stricter participation rules introduced by the regulator.
Speaking during a meeting with a delegation from the Petroleum Directorate of Sierra Leone at the commission’s headquarters in Abuja, the Chief Executive of the commission, Oritsemeyiwa Eyesan, said the level of investor response reflects growing confidence in Nigeria’s upstream petroleum industry.
According to her, the 2025 bid round offers 50 oil and gas blocks located across several of the country’s sedimentary basins.
Eyesan explained that the strong participation recorded so far occurred despite a regulatory rule limiting companies to bidding for only two blocks, either individually or through a consortium.
She noted that the restriction was designed to prevent companies from accumulating exploration assets without developing them and to ensure broader participation by serious investors.
The regulator also introduced additional measures aimed at strengthening transparency in the bidding process.
Eyesan revealed that an independent audit firm had been engaged to review and validate the digital bidding platform used for the licensing exercise.
According to her, the outcome of the system validation would be made public to reinforce investor confidence in the process.
She further explained that recent reforms introduced under the Petroleum Industry Act have significantly reshaped the country’s petroleum licensing framework by creating clearer rules and stronger accountability mechanisms for operators.
The reforms include stricter provisions that require companies holding exploration licences to either commence development activities within a defined period or relinquish the assets.
Industry experts say the policy shift has helped return several dormant oil assets to government control, thereby expanding opportunities for investors interested in participating in new exploration projects.
The licensing round itself was launched in December 2025 following approval by Bola Ahmed Tinubu as part of efforts to attract fresh capital into Nigeria’s upstream oil sector.
The blocks currently on offer are spread across multiple hydrocarbon-rich basins, including the Niger Delta, Anambra Basin, Bida Basin, Benue Trough and the Chad Basin.
Officials say the exercise is expected to boost exploration activity, increase Nigeria’s proven reserves and strengthen long-term crude oil production capacity.
The process has already completed the pre-qualification stage, with submissions closing on February 27, 2026. Qualified companies are now expected to proceed to the technical and commercial bidding stages before final awards are announced.
The entire licensing round is projected to run for about eight months, with the final commercial bid conference and approvals expected to conclude by July 2026.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.