In the News:
- Nigeria to begin early planning for 2026 oil licensing round.
- NUPRC says banks are crucial to sustaining oil and gas investment.
- Government to enforce drill or drop rule on idle licences.
Africa’s largest oil producer Nigeria has signalled plans to begin early preparations for its 2026 oil and gas licensing round in order to attract investors.
Speaking at the 2025 licensing round pre-bid conference, Oritsemeyiwa Eyesan the new head of the upstream regulator NUPRC said preliminary work for the 2026 bid round will run alongside the ongoing 2025 process.
Eyesan who recently took over from former NUPRC chief Gbenga Komolafe said Nigeria is positioning itself as a preferred global destination for oil and gas investment.
She said the growing number of indigenous oil companies is a positive sign for the sector and reflects increasing local participation.
“Because of the benefits of the PIA we are now able to do this more regularly. This bid round should have been concluded in 2025,” Eyesan said.
“The commission has decided that the 2026 bid round will commence almost immediately. All preliminary work will run in parallel with the 2025 round so we can achieve finalisation within the year.”
Banking sector key to oil industry
Speaking further, the NUPRC boss said oil investors must work closely with the banking sector which she described as the backbone of the industry.
According to the former NNPC executive, the survival of the oil and gas sector depends largely on the strength of the financial system.
“If the financial industry does not survive there will be no sustainability for us,” she said.
The 2025 oil and gas licensing round offers 50 oil blocks and 50 gas blocks to investors.
The bidding process began in November and is expected to run for another six months or less.
What you should know
In December President Bola Tinubu approved a leadership change at the upstream regulator replacing Gbenga Komolafe with Eyesan.
Industry analysts say the change could help speed up the bidding process.
Since the Petroleum Industry Act was signed into law in 2021 Nigeria has attracted a mix of global oil majors and independent firms into its oil and gas sector.
Eyesan urged prospective bidders to actively participate in the ongoing licensing round.
Meanwhile the Minister of Petroleum Resources Oil Heineken Lokpobiri said the government will enforce a drill or drop policy.
Under the new rule licences for under utilised oil blocks will be revoked.
He urged companies with technical expertise to partner with firms that have strong financial capacity to ensure they can meet all requirements needed to secure licences.
