The Federal Government has issued a stern warning to prospective investors in the 2025 oil licensing round, stating that all signature bonuses and bidding fees are strictly non-refundable. Speaking at a pre-bid conference in Lagos on Wednesday, January 14, 2026, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, emphasized that technical and commercial risks now rest entirely with the bidders.
This policy shift is intended to end the era of speculative bidding, where companies acquired licenses as “status symbols” without the intent or capacity to develop them.
Under the Petroleum Industry Act (PIA) 2021, specifically Sections 73 and 74, oil blocks must be awarded through transparent and competitive processes. Lokpobiri revealed that past bidders had frequently requested refunds or asset exchanges after discovering their awarded blocks contained gas instead of oil or were less productive than anticipated.
The Minister clarified that the government has no legal obligation to provide such relief, as awards are based on data procured by the companies themselves.
To lower entry barriers, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has recently slashed signature bonuses to a range of $3 million to $7 million, down from previous highs of $200 million. However, the Commission Chief Executive, Oritsemeyiwa Eyesan, warned that these lower costs come with stricter enforcement. The commission has launched a “work-it-or-lose-it” policy, where fallow fields will be recovered from dormant holders and re-offered to active investors.
The NUPRC is currently targeting a national crude oil production goal of two million barrels per day by 2027 and three million by 2030. To reach these “early barrels,” Eyesan unveiled a 90-day fast-track program for near-ready Field Development Plans and rig mobilizations.
Furthermore, the commission announced that preliminary work for the 2026 licensing round will begin almost immediately to ensure a continuous pipeline of investment into Nigeria’s upstream sector.
, Heineken Lokpobiri, emphasized that technical and commercial risks now rest entirely with the bidders.){kind=link}