The Federal Government has opened the 2026 Nigerian oil licensing round, offering 40 petroleum blocks across land, shallow-water and deepwater terrains to local and international investors as Nigeria seeks to attract fresh capital and increase upstream oil and gas production.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the licensing round on Tuesday, saying the exercise is designed to provide a transparent and predictable framework for investors interested in developing Nigeria’s petroleum resources.
Key Highlights
- 2026 Nigerian oil licensing round opens with 40 petroleum blocks on offer.
- The blocks cover land, shallow water and deepwater terrains.
- The exercise has received approval from President Bola Ahmed Tinubu and the Minister of Petroleum Resources.
- NUPRC says bidders must demonstrate the required technical expertise and financial capacity.
- All bidders will be required to disclose their beneficial owners.
- NUPRC will publish the evaluation methodology, bidding timetable and results.
- The commission says the exercise incorporates recommendations from NEITI on transparency and accountability.
- Successful asset development could add about 500 million barrels of oil reserves and at least 300,000 barrels per day of crude oil and condensate production within five years.
- NUPRC warned successful bidders: “Drill or Drop”, stressing that licences come with development obligations.
2026 Nigerian Oil Licensing Round Opens
NUPRC Chief Executive Officer Oritsemeyiwa Eyesan announced the 2026 Nigerian oil licensing round during the commission’s fifth anniversary celebration in Abuja.
Eyesan said the exercise followed approvals from President Bola Tinubu and the Minister of Petroleum Resources.
She said the 40 blocks would be available to investors with the technical expertise, financial strength and commitment required to develop Nigeria’s petroleum assets.
“Ladies and gentlemen, the wait is over. It is with great joy that I announce that pursuant to the approval of His Excellency, President Bola Ahmed Tinubu… the Nigerian 2026 Licensing Round is hereby announced,” Eyesan said.
According to her, the 2026 round will cover petroleum acreage across land, shallow-water and deepwater areas.
NUPRC Promises Transparent Oil Licensing Process
The commission said transparency and predictability would be central to the 2026 Nigerian oil licensing round.
Eyesan said petroleum acreage would no longer be allocated at the discretion of officials, stressing that investors need clear rules, reliable data and predictable processes before committing capital.
“Investors have choices. They go where the rules are clear, where the process is predictable and where data can be trusted,” she said.
Under the new guidelines, bidders will be required to disclose their beneficial owners, while NUPRC will provide greater details about its evaluation methodology and publish the results of the licensing exercise.
NEITI Recommendations Incorporated Into 2026 Round
The new licensing framework follows recommendations from the Nigeria Extractive Industries Transparency Initiative (NEITI) after its review of the 2022–2024 licensing rounds.
The review identified areas requiring improvement, including evaluation methodology, publication of results, public access to bidding information and beneficial ownership disclosure.
Eyesan said NUPRC had accepted the recommendations and would incorporate them into the 2026 licensing process.
The commission also plans to publish the bidding timetable at the beginning of the exercise and adhere strictly to it.
According to NUPRC, this will allow prospective investors sufficient time to obtain board approvals, mobilise funds and prepare their bids.
NUPRC Rules Out Unequal Access to Bidding Information
The commission said all material clarifications issued during the licensing process would be communicated to every participant.
The measure is intended to prevent any bidder from gaining an unfair advantage by receiving information that is unavailable to competitors.
“No bidder will know what others do not,” Eyesan said.
NUPRC said investors would be supported through its licensing website and portal, virtual data room, webinars and a dedicated help desk.
2025 Oil Licensing Round Attracted 200 Bids
The 2026 Nigerian oil licensing round follows the conclusion of the 2025 licensing exercise, which attracted 200 bids from 143 companies.
Thirty-one companies emerged as successful bidders for 37 blocks during the 2025 exercise.
The previous round also generated interest in frontier basins outside Nigeria’s traditional oil-producing areas in the Niger Delta.
The Anambra Basin, Benue Trough, Chad Basin and Benin Basin were among the areas that attracted investor interest.
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NUPRC Targets Higher Oil and Gas Production
Since the Petroleum Industry Act came into force in 2021, NUPRC said it had conducted three licensing exercises: the 2022 Deep Offshore Mini Bid Round, 2024 Nigerian Licensing Round and 2025 Nigerian Licensing Round.
The exercises resulted in the award of 57 Petroleum Prospecting Licences, according to the commission.
Eyesan said the development of awarded assets could significantly increase Nigeria’s oil and gas production.
She said the assets could add about 500 million barrels of oil reserves and at least 300,000 barrels per day of crude oil and condensate production within five years.
The projected output increase is expected to support Nigeria’s ambition of reaching three million barrels of crude oil production per day by 2030.
2026 Oil Blocks Could Increase Gas Reserves
The licensing exercise is also expected to support Nigeria’s gas development ambitions.
According to Eyesan, the assets could add approximately 20 trillion cubic feet of gas reserves and about 50 million standard cubic feet of gas production per day.
The expected increase would support the Federal Government’s Decade of Gas initiative and efforts to expand domestic gas supply.
NUPRC Warns Investors: “Drill or Drop”
While encouraging investors to participate, Eyesan warned that successful bidders would be expected to develop the assets rather than simply hold the licences.
“To those who will win, my message remains the same: Drill or Drop. A licence is a commitment to Nigeria, not a trophy on the wall,” she said.
The warning reflects the commission’s position that investors who secure petroleum acreage must demonstrate progress in developing the awarded assets.
Details of 40 Oil Blocks to Be Published
NUPRC said full details of the 40 oil blocks, eligibility requirements, bid parameters, evaluation criteria and conditions of award would be published through the commission’s website and dedicated licensing portal.
The commission urged both Nigerian and international investors to participate, saying the 2026 Nigerian oil licensing round is intended to make Nigeria a more competitive and predictable destination for upstream oil and gas investment.
The outcome of the exercise will be closely watched as Nigeria seeks to increase production, attract new investment and expand its oil and gas reserves.
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