The Federal Government is targeting more than $10 billion in fresh upstream oil and gas investments as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) prepares to launch the 2026 Licensing Round in the third quarter of the year.
The move follows the approval of the licensing exercise by President Bola Tinubu, who also serves as Minister of Petroleum Resources, in line with the provisions of the Petroleum Industry Act (PIA) 2021.
The announcement was made by Mrs. Oritsemeyiwa Eyesan, Commission Chief Executive of NUPRC, during a visit by Meren Energy (formerly Africa Oil) to the Commission’s headquarters in Abuja.
According to a statement issued by NUPRC’s Head of Media and Corporate Communications, Eniola Akinkuotu, the commercial bid phase of the ongoing 2025 Licensing Round will be concluded in July, paving the way for the commencement of the 2026 round.
The Federal Government believes the licensing exercise will attract significant capital inflows into Nigeria’s upstream petroleum sector while helping to revive dormant and underutilised oil assets.
The initiative is expected to support Nigeria’s ambition of increasing crude oil production to 2.2 million barrels per day, a significant jump from current production levels, which have fluctuated between 1.5 million and 1.8 million barrels daily.
Eyesan said the strong investor interest witnessed during the ongoing 2025 Licensing Round reflects growing confidence in Nigeria’s oil and gas sector.
“The President and Minister of Petroleum Resources has approved the 2026 Licensing Round. We are currently finalising preparations, and the launch will take place no later than the third quarter. This is a critical moment for us, and we are determined to make it a success,” she said.
She added that rising investment commitments and improving production levels indicate that recent reforms are making Nigeria a more attractive destination for energy investors.
The ongoing licensing round, launched in December 2025, has attracted about 300 companies competing for 50 oil blocks spread across different terrains and geological formations.
The blocks comprise:
- 19 shallow-water blocks
- 15 onshore blocks
- 15 frontier exploration blocks
- 1 deepwater block
To stimulate investor participation, the government significantly reduced signature bonus requirements. Successful bidders are expected to pay between $3 million and $7 million, compared to as much as $10 million in previous licensing rounds.
The licensing process includes pre-qualification, technical evaluation, and commercial bidding stages.
Industry analysts believe the reduced entry costs and ongoing sector reforms could enhance Nigeria’s competitiveness in attracting global energy investments.
