Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Monday made public the ground rules for its ongoing 2025 petroleum licensing round, with signature bonus set as low as between $3 million and $7 million in a bid to lower the usual barriers to entry and in line with global best practices.
Essentially, a signature bonus is the one-time, upfront payment that an oil or gas company pays to a government when it wins a licence or lease to explore or produce petroleum resources. It is the “entry fee” for securing rights to a block.
In a Frequently Asked Questions (FAQ) document released by the commission, the Gbenga Komolafe-led organisation further stated that the broad objectives of the exercise included: to grow Nigeria’s oil and gas reserves; enhance Nigerian content development; attract Foreign Direct Investment (FDI); as well as contribute to a long-term global energy sufficiency.
NUPRC also stated that the licensing round sought to boost Nigeria’s oil and gas production; expand the opportunity for gas utilisation; create job opportunities; and create value for the Nigerian government and investors.
In addition, the document stressed that winners of the 50 Petroleum Prospecting Licences (PPLs) will have the right to carry away and dispose of crude oil or natural gas won or extracted during the drilling of exploration or appraisal wells as a result of production tests.
While the licence was for an initial duration of three years, with a possible extension of another three years for onshore and shallow waters, and five years for deep water and frontier assets, NUPRC stated that the process will be concluded within an eight-month period, beginning November 17, 2025 and ending July 17, 2026.
NUPRC stated, “The exercise is open and non-discriminatory to both local and foreign companies. A foreign company does not need to register in Nigeria to participate in the bid but the PPL shall only be awarded after such a company has been duly registered under the Companies and Allied Matters Act (CAMA) as stipulated in the PIA.
“An Applicant is ineligible or may be disqualified at any time, on the following grounds, if it or any of its members: Is indebted to the government; has not operated a previously awarded licence or lease vigorously and in a business-like manner in accordance with applicable laws; is or becomes insolvent and has not or does not comply with applicable laws, among others.”
The commission said two major considerations were: technical competence in the upstream sector of the oil and gas industry, and financial viability and capacity as highlighted in paragraph 13.2 of the 2025 licensing round guidelines.
According to NUPRC, technical competence will be evaluated using work experience across work areas, including: geological and geophysical capabilities; drilling and well engineering; reservoir evaluation and management; production engineering and technology; as well as development planning and facilities engineering and management.
It said, “All bidders shall be required to submit a bid within a range of $3 million and $7 million as approved by the minister of petroleum for the reduction of entry barriers. Bids submitted below the prescribed range shall be deemed non-compliant and shall not be evaluated.”
The upstream regulator stated that the minimum financial requirement for an entity to participate in the licensing round included average annual turnover of $100,000,000.00 for deep offshore blocks and $40,000,000 for onshore and shallow water blocks, among others.
It stated that no bidder, whether participating individually or as a member of any consortium, shall submit applications for more than two assets in total across all applications.
NUPRC said, “Participation in more than one consortium shall count towards this limit. For the avoidance of doubt, where a company has equity, direct or indirect ownership, or management involvement in multiple consortium vehicles, all such applications shall be aggregated and treated as a single bidder’s applications.”
NUPRC reiterated that a newly registered company, consortium or special purpose vehicle could participate in the 2025 licensing round, provided its shareholders, or consortium members (as applicable) met the pre-qualification criteria.
Meanwhile, the commission dismissed reports that it was withholding the Frontier Exploration Fund (FEF) from Nigerian National Petroleum Company Limited (NNPC Ltd).
Head of Media and Strategic Communication, Eniola Akinkuotu, said $185, 123, 333 had been approved, along with N14.9 billion, explaining that the fund was not domiciled in the commission but in an account controlled by Central Bank of Nigeria (CBN).
The commission added that its role was simply to evaluate the Work Programme submitted by NNPC after which an approval would be given for the release of the fund.
“We approve funds based on certified activities and contracts awarded. So, if a contract has not been awarded, we cannot approve payments,” a statement by the commission read.
The statement said NUPRC, in a bid to promote transparency, had contracted PwC to evaluate NNPC’s claims before the final approval of the fund.
It stated, “So far, there is no outstanding sum. The NUPRC approved the final release on November 27, 2025 to the tune of $140,000,000. We have documents to back this up. Earlier, N14.9 billion and $45 million were released.
“Anyone interested can also reach out to the NNPC rather than rely on faceless individuals seeking to tarnish the image of the commission.”
The statement stressed that the fund was solely for the use of NNPC and it would be absurd for any operator to make spurious claims.
The upstream regulator added that Minister of State for Petroleum, Senator Heineken Lokpobiri, had earlier issued a statement denying investigating NUPRC over the handling of the fund.
“The honourable minister had issued a rebuttal on the so-called investigation on November 17, 2025. It amounts to mischief for anyone to reference a statement which has been denied by the purported author,” the commission said.
Emmanuel Addeh
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