Thirteen oil and gas blocks offered by the Federal Government in Nigeria’s 2025 Licensing Round failed to attract investor bids, forcing their return to the national licensing pool despite a competitive auction that generated about 200 bids from 143 qualified companies.
The outcome of the country’s flagship upstream licensing exercise was announced on Tuesday in Abuja by the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, during the 2025 Commercial Bid Conference, where the Commission presented the results of the bidding process conducted under the Petroleum Industry Act (PIA) 2021.
Although the exercise recorded strong investor participation, the inability of more than a quarter of the offered assets to secure commercial bids highlights the increasingly selective investment environment in the global oil and gas industry, where operators are placing greater emphasis on commercially viable, lower-risk exploration opportunities.
Speaking at the conference, Eyesan disclosed that the Federal Government offered 50 oil and gas blocks across seven sedimentary basins during the 2025 Licensing Round, but commercial representations were received for only 37 of the assets.
“At the end of the exercise, we had 50 blocks on offer, but representations were received for only 37 of them. The remaining 13 blocks will be returned to the licensing basket”, she stated.
The returned assets will remain under the Federal Government’s control and may be reintroduced in subsequent licensing rounds as market conditions improve and fresh investment opportunities emerge.
Despite the 13 unbid assets, the Nigerian Upstream Petroleum Regulatory Commission described the licensing round as successful, pointing to the high level of participation recorded throughout the process.
Eyesan revealed that the exercise initially attracted expressions of interest from nearly 300 companies, a development she said demonstrated growing confidence in Nigeria’s upstream petroleum industry following the implementation of the Petroleum Industry Act.
According to her, the prequalification exercise reduced the number of eligible participants to 196 companies before they advanced to technical and commercial evaluations.
At the conclusion of the process, 143 companies participated in the Commercial Bid Conference, submitting about 200 bids for the available assets.
“From the almost 300 expressions of interest we received, the prequalification process narrowed the number to 196 companies. Eventually, 143 companies participated in the commercial bidding exercise, submitting about 200 bids”, Eyesan said.
She noted that the figures reflected continued investor confidence in Nigeria’s oil and gas sector despite global economic uncertainties and the ongoing energy transition.
The 2025 Licencing Round, announced in November 2025 under the provisions of the Petroleum Industry Act (PIA) 2021, comprised 50 oil and gas blocks strategically distributed across seven sedimentary basins.
The portfolio included 16 onshore blocks in the Niger Delta, 18 shallow-water blocks, one deep offshore block, three blocks in the Benin Basin, four blocks in the Anambra Basin, four blocks in the Chad Basin and four blocks in the Benue Trough.
A pre-bid conference was held in Lagos in January 2026, while registration and prequalification closed in February. Technical evaluations and commercial assessments were completed in March before the final Commercial Bid Conference in Abuja.
Under the NUPRC’s licencing framework, successful bidders are selected through a weighted assessment of signature bonus commitments, proposed work programmes, technical competence, financial capacity and performance guarantees.
According to the Commission, the evaluation model is designed to ensure that petroleum assets are awarded only to companies with the financial strength, technical expertise and operational capability required to accelerate exploration, field development and production.
The Commission expressed optimism that, despite the return of 13 unbid assets to the licensing pool, the overall outcome of the 2025 Licensing Round reinforces confidence in Nigeria’s upstream petroleum sector and provides a solid foundation for future licensing exercises aimed at unlocking the country’s vast hydrocarbon resources and boosting national oil and gas output.
