• Nigeria lowered oil and gas signature bonuses to $3m–$7m from much higher past levels.
• The change applies to payments made before license awards in the current bidding round.
• The move comes as investment and crude output remain below government targets.

Nigeria’s federal government has announced easier financial terms for access to its ongoing oil licensing round. The information was reported on January 28 by several local and international media outlets following a webinar involving the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the upstream oil regulator.

The measure concerns the signature bonus, an upfront payment required from companies when signing oil and gas exploration or production contracts. Previously close to $200 million several years ago, the bonus has been reduced to a range of $3 million to $7 million. In 2024, it stood at about $10 million. According to the regulator, bids must fall within this range to be considered valid.

The NUPRC said the decision was approved by the minister of petroleum and applies to payments made by successful bidders before the official award of licenses.

The regulator also stressed that bid evaluation is not based solely on the signature bonus amount. Other criteria, including the proposed work program, technical capacity, and the bidder’s governance structure, are also taken into account during the licensing process.

The reduction in signature bonuses had already been mentioned in December 2025, when the regulator said the measure was part of broader steps aimed at easing investor participation in the licensing cycle.

A process shaped by falling investment

The current licensing round covers 50 oil and gas blocks offered for award. According to information presented by the NUPRC during meetings with investors, the blocks are spread across onshore areas, shallow waters, so-called frontier basins, and deepwater zones.

Interested companies must register on the regulator’s official platform, review the data available for each block, and submit their bids within the set deadlines. The entire process is conducted digitally.

The NUPRC said the award process is based on a scoring system that combines financial and technical criteria. Bids are reviewed by internal committees before being validated by the relevant authorities, in line with the existing regulatory framework.

The regulator also said the licensing cycle is subject to independent oversight, including by the Nigeria Extractive Industries Transparency Initiative (NEITI), to ensure transparency.

The bidding round takes place against a backdrop of declining investment in Nigeria’s oil sector in recent years, according to official data. Several international companies have sold off assets, mainly onshore.

Throughout 2025, Nigeria failed to meet its production targets. The country produced an average of 1.64 million barrels per day of crude oil and condensates during the first eleven months of the year. The government aims to raise output to 2 million barrels per day by 2027.

Abdel-Latif Boureima