The Federal Government has cautioned prospective investors in Nigeria’s 2025 oil licensing round that all risks, errors, and miscalculations arising from the bidding process will be borne entirely by the companies involved, with no refunds of signature bonuses or exchanges of oil assets under any circumstance.
Minister of State for Petroleum Resources, Heineken Lokpobiri, issued the warning at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) pre-bid conference in Lagos, emphasizing that oil licences are government assets meant for active development rather than speculation or prestige. He recounted instances from the 2020 bid round where companies sought refunds or alternative acreages, noting that the Petroleum Industry Act (PIA) does not permit such adjustments.
“The government under any law has no obligation to refund your bidding fees or signature bonuses because you find out that eventually you didn’t see oil or only found gas,” Lokpobiri said. He urged companies without sufficient capital to partner with credible investors to ensure project viability.
Echoing this, NUPRC Chief Executive Oritsemeyiwa Eyesan highlighted reforms under the PIA designed to eliminate asset hoarding and promote development. She announced a revision of the signature bonus to reduce entry barriers and revealed plans for a 2026 bid round to run alongside the 2025 round for continuity.
Eyesan also outlined a sweeping upstream reform agenda focused on accelerating oil production, improving regulatory efficiency, and tightening hydrocarbon accountability. The commission has commenced a 90-day programme to fast-track approvals for near-ready field development plans and other quick-win projects to boost crude output.
The reforms aim to restore Nigeria’s status as Africa’s top oil producer, with targets of two million barrels per day by 2027 and three million barrels per day by 2030. Eyesan emphasized predictable approvals, disciplined acreage performance, and sustainable operations as the pillars of the government’s strategy to attract investment and increase production.
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