Table of Contents
The Federal Government has further lowered the signature bonus for bidders of oil blocks to a range of $3 million to $7 million, as part of its strategy to attract more investors in anticipation of the 2025 licensing round.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revealed this adjustment in an update on its website, stating that this initiative is intended to reduce entry barriers for potential investors.
“Are you interested in one of the oil blocks available for the 2025 Licensing Round? The Nigerian government has kindly reduced the signature bonus to between $3 million and $7 million,” the commission announced.
It also noted that all bidders are required to submit offers within this specified range.
This represents another decrease following the government's reduction of signature bonuses from approximately $200 million to $10 million in 2024. NUPRC Chief Executive, Gbenga Komolafe, indicated that the cut was informed by a survey of global industry practices, including benchmarks from countries such as Brazil.
According to NUPRC, a total of 50 oil blocks are available for bidding across onshore, shallow water, and deep offshore terrains. These include PPL 2A29–PPL 2A62; PPL 2010; PPL 307; PPL 308; PPL 309; PPL 900–PPL 903; PPL 700–PPL 703; and PPL 800–PPL 803.
Frequently Asked Questions
What is the new range for the signature bonus for oil blocks?
The new range for the signature bonus is between $3 million and $7 million.
How many oil blocks are available for the 2025 Licensing Round?
There are a total of 50 oil blocks available for bidding across various terrains.
Why was the signature bonus reduced?
The reduction was made to lower entry barriers for prospective investors and was based on a survey of global industry practices.
Eze Chidiebere Paul
I'm dedicated to creating high-quality content that informs, inspires, and delights. If you have any questions or suggestions, don't hesitate to get in touch. Happy reading!
