The Federal Government has warned companies participating in the 2025 oil licensing round that any mistakes, miscalculations, or unmet expectations during the bidding process will be the sole responsibility of the bidders. Officials stressed that signature bonuses and oil assets will not be refunded or exchanged under any circumstances.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, delivered the warning at a pre-bid conference organized by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Lagos on Wednesday. The event, attended both physically and online, aimed to guide prospective investors on available assets, legal requirements, and risks involved in the licensing process.
Lokpobiri noted that the days of acquiring oil licenses for prestige, speculation, or resale are over. He recounted cases from previous bid rounds where companies demanded refunds or alternative blocks after finding the awarded assets unsatisfactory. He stressed that such requests have no legal basis under the Petroleum Industry Act (PIA).
“The government is under no obligation to return bidding fees or signature bonuses if a bidder does not find oil or only discovers gas. Once a license is awarded, all technical and commercial responsibilities rest solely with the company,” Lokpobiri said. He also warned against holding oil blocks without development, describing licenses as tools for value creation rather than trophies.
NUPRC Chief Executive Oritsemeyiwa Eyesan echoed the minister’s message, highlighting that reforms under the PIA have removed incentives for block hoarding. She announced adjustments to signature bonuses and other fees to lower entry barriers and revealed that the 2026 bid round will start almost immediately alongside the 2025 process to ensure continuity.
Eyesan outlined a broad reform agenda to boost oil production, streamline regulatory approvals, and strengthen accountability, with the government targeting three million barrels per day by 2030. She also introduced initiatives to fast-track near-ready projects, including field development plans, well interventions, and rig mobilization, while urging operators to submit high-impact projects to bring shut-in fields back into production.
The NUPRC will publish Service Level Agreements outlining approval timelines, deploy digital workflows for permitting and data submissions, and ensure transparent, predictable regulatory decisions. Eyesan said the commission’s strategy rests on three pillars: optimizing production, improving regulatory efficiency, and ensuring safe and sustainable operations.
Nigeria, Africa’s largest oil producer, has struggled with declining output in recent years due to underinvestment, oil theft, and regulatory delays. Government officials say the current reforms aim to restore investor confidence and reverse this trend.
