Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Monday set the signature bonus for oil blocks to between $3 million and $7 million in the ongoing 2025 petroleum licensing round.

A statement by the Commission said the move was to lower the usual barriers to entry and was in line with global best practices.

In 2024, the government reduced the signature bonus payable by successful bidders from around $200m to $10m. The NUPRC disclosed that an investment in deepwater would attract $10m as a signature bonus, while shallow water and onshore would attract $7m.

The Chief Executive of the Nigerian Upstream Regulatory Commission, Gbenga Komolafe, stated that the NUPRC surveyed what other countries like Brazil demand as signature bonuses from would-be investors and discovered the need to slash that of Nigeria.

A signature bonus is a non-refundable payment made by a contractor to the government upon the signing of an agreement. Firms that are awarded oil or gas assets are expected to pay signature bonuses to the government.

According to NUPRC, the licensing round sought to boost Nigeria’s oil and gas production; expand opportunities for gas utilisation; create job opportunities; and create value for the Nigerian government and investors.

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.

Winners of the 50 Petroleum Prospecting Licenses (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.

NUPRC informed that there are 50 blocks covering the onshore, shallow water, and deep offshore areas.

“The blocks on offer are: PPL 2A29; PPL 2A30; PPL 2A31; PPL 2A32; PPL 2A33; PPL 2A34; PPL 2A35; PPL 2A36; PPL 2A37; PPL 2A38; PPL 2A39; PPL 2A40; PPL 2A41; PPL 2A42; PPL 2A43; PPL 2A44; PPL 2A45; PPL 2A46; PPL 2A47; PPL 2A48; PPL 2A49; PPL 2A50; PPL 2A51; PPL 2A52; PPL 2A53; PPL 2A54; PPL 2A55; PPL 2A56; PPL 2A57; PPL 2A58; PPL 2A59; PPL 2A60; PPL 2A61; PPL 2A62; PPL 2010; and PPL 307.”

Others are “PPL 308; PPL 309; PPL 900; PPL 901; PPL 902; PPL 903; PPL 700; PPL 701; PPL 702; PPL 703; PPL 800; PPL 801; PPL 802; and PPL 803.”

While the license 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 eight months, 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.”

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 an average annual turnover of $100,000,000.00 for deep offshore blocks and $40,000,000 for onshore and shallow water blocks, among others.

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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 the 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.