Nigeria’s latest drive to attract investment into its oil and gas industry has reached a critical stage, with 143 companies competing for 50 oil and gas blocks in a licensing round that could shape the country’s upstream sector for years to come.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will on Tuesday open the commercial bidding phase of the 2025 Licensing Round, where qualified companies will compete for exploration and production rights across some of Nigeria’s most prospective hydrocarbon basins.

The commercial bid conference, to be held in Abuja, follows months of screening and evaluation that began after the licensing round was announced in November 2025. Of the 286 companies that initially applied, 196 passed the prequalification stage, while 143 companies eventually submitted 200 commercial bids for the available assets, highlighting strong investor interest despite longstanding challenges in Nigeria’s upstream industry.

The 50 blocks span both established producing regions and frontier exploration areas. They include 16 onshore blocks in the Niger Delta, 18 shallow water blocks, one deep offshore block, three onshore blocks in the Benin Basin, four in the Anambra Basin, four in the Chad Basin and four in the Benue Trough.

The spread reflects the Federal Government’s strategy of attracting investment beyond the traditional Niger Delta while encouraging exploration in underdeveloped basins believed to hold significant hydrocarbon potential.

Unlike earlier stages of the licensing process, the commercial bidding phase focuses on the financial and technical commitments companies are willing to make.

Also Read: High food prices still threaten Nigerians despite slower inflation – CPPE

According to the commission, bids will be evaluated using a weighted scoring system based on signature bonuses, proposed work programmes and performance security commitments, with the highest overall scores determining the successful bidders.

The approach is intended to ensure that licences are awarded not only to companies offering the highest upfront payments but also to those demonstrating the technical capacity and financial commitment required to develop the assets.

The licensing round comes at a time when Nigeria is working to increase crude oil production, expand gas development and attract fresh upstream investment following years of declining exploration activity.

Although recent reforms under the Petroleum Industry Act (PIA) have improved regulatory certainty, the sector continues to grapple with challenges including ageing infrastructure, crude theft, pipeline vandalism, project delays and high operating costs, factors that have discouraged investment and limited production growth in recent years.

The government hopes the latest bid round will help reverse that trend by unlocking dormant assets, increasing exploration activity and supporting its target of raising oil production while supplying more feedstock to domestic refineries.

The timing is also significant. Nigeria recently exceeded its OPEC crude oil production quota for the fourth consecutive month, reaching its highest output level in more than six years. Industry stakeholders see sustained investment in new exploration and production assets as essential if that recovery is to continue over the longer term.

The commercial bid conference represents one of the final and most competitive stages of the licensing process. Companies invited to participate have already passed technical and financial assessments and must now demonstrate the strength of their commercial offers.

For investors, winning a licence provides access to potentially valuable petroleum assets. For Nigeria, the outcome will serve as another test of whether recent reforms are succeeding in restoring investor confidence and positioning the country as one of Africa’s most attractive destinations for upstream oil and gas investment.

With 200 bids competing for just 50 blocks, the outcome of the exercise is expected to influence future exploration, production growth and investment across Nigeria’s energy sector in the years ahead.

Meiza Nigeria