Understanding Nigeria’s 2025 Licensing Round: Regulatory, Commercial, and Operational Perspectives

Introduction

The Nigerian Upstream Petroleum Regulatory Commission (“NUPRC” or “Commission”) formally announced the commencement of the 2025 Licensing Round, which began on 1st December 2025. The round offers 50 oil and gas blocks spanning frontier, onshore, shallow-water, and deep-water acreages. The blocks are located across Nigeria’s sedimentary basins, namely the Niger Delta Basin, Chad Basin, Benue Trough, Anambra Basin, and Dahomey (Benin) Basin. The Niger Delta Basin accounts for the majority, with 35 blocks comprising 16 onshore, 18 shallow-water, and 1 deep-offshore acreage. The Dahomey (Benin) Basin offers three onshore blocks, while the Anambra (frontier) Basin, Benue Trough, and Chad Basin each present four onshore blocks for bid. 

Participation in the 2025 Licensing Round is governed by the Petroleum Industry Act, 2021 and the Nigeria 2025 Licensing Round Guidelines (the “NUPRC Guidelines” or “Guidelines”) released by the Commission¹. The NUPRC Guidelines set out a structured roadmap outlining the eligibility criteria, prequalification requirements, bidding procedures, evaluation metrics, and post-award obligations applicable to prospective bidders. These Guidelines are central to ensuring transparency, competitiveness, and regulatory compliance throughout the licensing process. 

It is against this backdrop that this Article seeks to provide practical guidance and highlight key regulatory, commercial, and procedural considerations that prospective bidders should be mindful of when participating in the 2025 Licensing Round. 

1. Eligibility and Participation

• Only companies incorporated on or before 27 February 2026 are eligible to participate in the Licensing Round.² 

• While an applicant may be a foreign company, a Petroleum Prospecting Licence (PPL) can only be awarded to a company duly incorporated in Nigeria;³ accordingly, any successful foreign applicant must incorporate a Nigerian company prior to award.⁴ 

• Applicants may bid individually or as part of a consortium.⁵  

• Where a consortium is formed, the members must; 

  • Submit a valid Consortium Agreement identifying a lead member to the Commission; 

  • Execute a Power of Attorney appointing an authorised representative on behalf of the consortium.  

  • At least one member must be designated as Operator, with a minimum participating interest of 30%, and any change of Operator requires the Commission’s approval.⁶  

  Where a PPL is held by an unincorporated joint venture, members’ liabilities shall be joint and several.

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