The Federal Government has slashed the signature bonus for investors aiming to secure oil blocks in Nigeria’s 2025 licensing round, lowering it to between $3 million and $7 million. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the reduction on its website, describing it as part of efforts to make Nigeria’s oil and gas sector more accessible to investors.

Previously, the signature bonus for successful bidders had dropped from around $200 million in 2024 to $10 million. The new reduction sets the fee at $7 million for deepwater blocks and $3 million for shallow water and onshore blocks. NUPRC also stated that the bonus must be paid in U.S. dollars.

A signature bonus is a non-refundable payment made by companies upon securing oil or gas assets. Winners of the 2025 licensing round will be awarded a Petroleum Prospecting Licence, giving them exclusive rights to drill exploration and appraisal wells, along with non-exclusive rights to carry out other exploration operations. The licence lasts for an initial three years, with a possible three-year extension for onshore and shallow water blocks, and a five-year term for deepwater and frontier blocks.

NUPRC outlined a two-stage bidding process. The first stage, qualification, evaluates applicants or consortia to shortlist qualified bidders. Only shortlisted companies proceed to the second stage, where they submit technical and commercial bids. Each company or consortium can apply for a maximum of two blocks.

For this round, the commission has made 50 blocks available across onshore, shallow water, and deep offshore areas, offering a wide range of opportunities for investors looking to enter Nigeria’s upstream oil and gas sector.