The Nigerian government has reduced signature bonuses for oil blocks in the 2025 Licensing Round, a move aimed at lowering entry barriers for investors. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced that signature bonuses will now range between $3 million and $7 million, down from the previous $10 million.
“This reduction is part of the government’s efforts to make participation in the oil and gas sector more accessible,” the commission said in an update on its website. Bidders are required to submit proposals within the approved $3 million to $7 million range.
In 2024, the government had already slashed signature bonuses from approximately $200 million to $10 million after benchmarking against countries like Brazil. A signature bonus is a non-refundable payment made to the government when an oil or gas asset is awarded. According to NUPRC, deepwater investments previously required a $10 million bonus, while shallow water and onshore blocks required $7 million. These figures have now been further reduced to $7 million and $3 million, respectively. Payments must be made in U.S. dollars.
The winners of the licensing round will receive a Petroleum Prospecting Licence (PPL), granting exclusive rights to drill exploration and appraisal wells, conduct petroleum exploration, and manage crude oil or natural gas produced during testing. Licences are valid for an initial period of three years—extendable by another three years for onshore and shallow water blocks, while deepwater and frontier blocks carry a five-year duration.
NUPRC will implement a two-stage bidding process. The first stage, the qualification stage, requires submission and evaluation of applications. Only shortlisted applicants who sign a Confidentiality Agreement will proceed to the bid stage, where technical and commercial proposals will be evaluated.
The regulator also capped participation, allowing each bidder—whether solo or part of a consortium—to apply for no more than two assets. Ownership or management involvement across multiple consortiums counts toward this limit.
A total of 50 blocks are available across onshore, shallow water, and deep offshore areas. Among the blocks listed are PPL 2A29–PPL 2A62, PPL 2010, PPL 307–PPL 309, PPL 700–PPL 703, and PPL 800–PPL 803.
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