The Federal Government has warned prospective investors in the 2025 oil licensing round that any errors, miscalculations, or unmet expectations during the bidding process will be the sole responsibility of the companies involved. Officials stressed that there will be no refunds of signature bonuses or exchanges of oil assets under any circumstances.
The warning was issued by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, during the 2025 Nigerian Upstream Petroleum Regulatory Commission (NUPRC) pre-bid conference in Lagos on Wednesday. The event, which drew a large audience both in person and online, aimed to educate prospective bidders on available assets, the legal framework, and the risks inherent in the licensing process.
Lokpobiri said the era when oil licences were acquired for speculation, prestige, or resale is over, emphasizing that licences are government assets that must be actively developed.
“I’ve had to resolve many issues from the 2020 bid round, where some winners requested refunds of their bidding fees. It is clearly stated that registration fees are non-refundable, yet some came to my office demanding them,” he said.
The minister added that some bidders had also requested alternative acreages, claiming the assets they won were not satisfactory. He clarified that the Petroleum Industry Act (PIA) does not allow asset exchanges or refunds on these grounds.
“Once a bid is concluded and an award made according to the law, the technical and commercial risks rest entirely with the bidder. The government is under no obligation to refund your bidding fees or signature bonuses if you discover you found only gas or no oil,” Lokpobiri stated.
He also warned against holding oil blocks without development, describing licences as instruments of value creation rather than personal trophies. “Some people have held licences for 20 years, flaunting them without adding any real value,” he said.
Lokpobiri emphasized that the 2025 licensing round is firmly anchored on the PIA, noting that Sections 73 and 74 require petroleum prospecting licences and mining leases to be awarded through transparent, competitive, and non-discriminatory processes based on financial, technical, and work programme criteria. He encouraged companies without sufficient capital to collaborate with credible partners to ensure viable bids.
“Fossil fuel resources will remain central to global energy supply for decades, accounting for over 50 percent of energy sources in the foreseeable future,” he added.
Echoing this stance, NUPRC Chief Executive Oritsemeyiwa Eyesan said reforms under the PIA have eliminated practices that encouraged block sitting. She noted that assets on offer today include fallow fields recovered from previous holders who failed to develop them.
Eyesan announced revisions to the signature bonus approved by President Bola Tinubu to lower entry barriers and adjustments to other fees payable before first oil. She revealed that the commission plans to commence the 2026 bid round alongside the 2025 round to ensure continuity.
Beyond licensing, Eyesan outlined a comprehensive reform agenda aimed at accelerating oil production, improving regulatory efficiency, and enhancing hydrocarbon accountability, with a target of three million barrels per day by 2030.
She said the commission has launched a 90-day programme to fast-track approvals for near-ready Field Development Plans, well interventions, rig mobilisation, and other “quick-win” projects capable of delivering early production.
Eyesan described her vision for the upstream sector as resting on three pillars: production optimization and revenue growth; regulatory predictability and speed; and safe, sustainable operations. She stressed that these reforms align with President Tinubu’s Renewed Hope Agenda to reach two million barrels per day by 2027 and three million by 2030.
The commission will publish Service Level Agreements to outline approval timelines, deploy digital workflows for permitting and data submissions, and ensure regulation is delivered transparently and efficiently. Eyesan encouraged operators with mature projects to submit proposals before the end of the first quarter of 2026 and announced the creation of a monthly CCE–Operators Leadership Forum including NNPC, OPTS, IPPG, and emerging producers.
“Nigeria will be measured by faster approvals, higher and more secure production, disciplined acreage performance, world-class health, safety, and environment outcomes, and trusted data integrity,” Eyesan said.
Nigeria, Africa’s largest oil producer, has faced declining output due to underinvestment, oil theft, and regulatory delays, but the government says current reforms aim to restore investor confidence and reverse this trend.
