The Federal Government has announced that 13 oil and gas blocks offered during the 2025 Oil Licensing Round will be returned to the national licensing pool after they failed to attract any investor bids.
The outcome has raised questions about investment appetite in parts of Nigeria’s upstream oil sector, despite what officials described as a successful overall bidding exercise.
The announcement was made on Tuesday in Abuja during the 2025 Commercial Bid Conference by the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan. However, the government maintained that investor confidence in Nigeria’s oil and gas industry remains strong, pointing to the large number of companies that participated in the licensing process.
Although 13 blocks received no bids, the exercise still attracted significant interest from investors across different parts of the industry.
Moreover, officials noted that competition remained healthy for many of the available assets, suggesting that investors remain selective rather than withdrawing from Nigeria’s petroleum sector altogether.
Speaking during the conference, Eyesan explained that the government initially placed 50 oil and gas blocks on offer across several sedimentary basins.
She said:
“At the end of the exercise, we had 50 blocks on offer, but representations were received for only 37 of them. The remaining 13 blocks will be returned to the licensing basket.”
The decision means the unclaimed assets will remain available for future licensing opportunities.
Despite the outcome, Eyesan described the overall response to the 2025 Oil Licensing Round as encouraging. According to her, about 143 companies successfully participated in the commercial bidding stage by submitting approximately 200 bids for the available oil and gas assets.
She further disclosed that interest in the exercise was even stronger during the early stages of the process.
According to Eyesan:
“From the almost 300 expressions of interest we received, the prequalification process narrowed the number to 196 companies. Eventually, 143 companies participated in the commercial bidding exercise, submitting about 200 bids.”
Furthermore, she noted that the large number of interested companies reflects growing confidence in Nigeria’s upstream petroleum industry despite current global energy market uncertainties.
The licensing exercise was launched in November 2025 under the Petroleum Industry Act (PIA) 2021.
The programme was designed to attract fresh investment into Nigeria’s oil and gas sector while boosting exploration and future production.
The 50 offered assets covered seven major sedimentary basins across the country. These included 16 onshore blocks in the Niger Delta and 18 shallow water blocks. In addition, one deep offshore block was offered alongside three blocks in the Benin Basin.
Furthermore, four blocks were located in the Anambra Basin, while another four were situated in the Chad Basin. Four additional blocks were also offered in the Benue Trough.
The licensing process followed several carefully planned stages. The application portal opened in December 2025. Meanwhile, a pre-bid conference was held in Lagos in January 2026 to guide prospective investors through the exercise.
Registration and prequalification closed in February. Thereafter, technical and commercial evaluations were completed in March before the final commercial bid conference.
According to the NUPRC, successful bidders are selected through a detailed assessment process rather than price alone.
Several factors are considered before awards are made. These include signature bonus commitments, proposed work programmes, technical experience, financial strength, and performance guarantees. Therefore, the goal is to ensure that awarded companies possess the capacity to develop the assets efficiently.
Moreover, the government believes this approach will improve exploration activities, increase crude oil production, and strengthen long-term investment in Nigeria’s petroleum industry.
Meanwhile, attention will now shift to the successful bidders as regulatory authorities conclude the award process. Further licensing opportunities could also be announced in the future as Nigeria continues efforts to attract more investment into its upstream oil and gas sector.
