2025 oil bid round: NUPRC sets new transparency benchmark in Nigeria’s upstream sector

The words of Daniel Kaufmann, a world-renowned expert on economic development, governance and anti-corruption that: “Corruption thrives in secrecy, but a nation thrives in transparency” aptly capture the transformation now unfolding in Nigeria’s upstream sector.

This is because Nigeria’s 2025 oil block licensing round is already being seen as the most transparent in the country’s history, marking a clear break from years of controversy and a shift towards a more rules-based, technology-driven process built on fairness and accountability.

For a long time, oil licensing rounds in Nigeria drew criticism for discretionary decisions, limited transparency and disputes that often followed the bidding process. This time, however, the exercise conducted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) appears to signal a departure from that pattern, aligning more closely with global best practices under the Petroleum Industry Act (PIA) 2021.

The 2025 round, the third in four years, stood out for its competitiveness. Several well-established players lost out to lesser-known firms, reinforcing the idea that the process was driven by merit rather than influence. Notably, subsidiaries of the Nigerian National Petroleum Company (NNPC) and Heirs Energies owned by billionaire Tony Elumelu did not emerge as winners.

Much of this shift has been linked to the leadership of President Bola Tinubu and the Chief Executive Officer of the NUPRC, Oritsemeyiwa Eyesan. Since her appointment in December 2025, Eyesan has overseen a noticeable turnaround in the commission and the wider upstream sector, pushing reforms centred on transparency, digital processes and stricter regulatory discipline. Her approach has helped reposition the NUPRC as a more credible and reform-minded regulator.

How the Winners Emerged

The 2025 Commercial Bid Conference, organised by the NUPRC and held at the Transcorp Event Centre in Abuja capped an eight-month process that regulators say has drawn fresh investor confidence into Nigeria’s oil sector, including, for the first time, the nation’s long-overlooked frontier basins.

At the end of the process, 31 companies emerged winners of 37 oil and gas blocks.

The round began with a broad appeal: 50 blocks spanning seven terrains, from the mature Niger Delta to the largely unexplored Chad Basin and Benue Trough. Around 300 companies initially expressed interest. After a prequalification screening, 196 were cleared to bid, and by the submission deadline, 143 companies had filed 200 technical and commercial bids covering 37 of the 50 available blocks. The remaining 13 blocks attracted no bids.

Of the blocks that drew interest, the Niger Delta Shallow Water terrain proved the most contested with 18 blocks awarded, followed by Niger Delta Onshore with 16. However, it was the frontier basins—the Benin Basin, Anambra Basin, Chad Basin, and Benue Trough—that the regulator highlighted as the round’s most significant development, with investor interest in these previously underexplored regions described as unprecedented.

Among the companies awarded blocks were SSonic Petroleum Limited (PPL 2A29), CFP Pipeline and Flowlines (2A30), Dutchford E&P Limited (2A32), Attabanson Global Company Limited (2A33 and PPL 901), Rosem Energy Limited (2A38), Pivot-GIS Limited (2A39), Network E&P (2A40), Asharami (2A41), LexOil (2A42), BVOF (2A43), Gupsco Energy Limited (2A44 and 2A51), Saratoga (2A45), Volante (2A46), Concept-Reel Petroleum Services Limited (2A47 and 2A55), Clinton Oil Field (2A48 and 2A62) and Nuway Oaklane Limited (2A49).

Others are Ramec (2A50), Italia (2A53), Blueridge E&P (2A54), Up Energies Limited (2A56), AYM Shafa (2A57), Blackrock Holdings Limited (2A58), Funtay Integrated Business Limited (2A59), Riparian Development and Production Limited (2A60), Nikstallis (2A61 and PPL 900), Stardeep Petroleum (PPL 2010), Dakoda & U Limited (PPL308 and PPL 800), Southborne Oil and Gas Limited (PPL 902), Lanaka Petroleum (PPL 903) Highban Resources Limited (PPL 700), Eyre Energy Limited (PPL 801).

But emerging as a winner is only the first step. NUPRC boss disclosed that the final awards hinge on winners promptly paying their signature bonuses and meeting the Commission’s “drill or drop” requirement, a policy designed to prevent companies from sitting on undeveloped acreage.

Under the rules, winning bidders have 90 days from receiving their offer letters to satisfy post-bid conditions, including guarantees, signature bonus payments, first-year rent and execution of contractual documents. Companies that fail to meet these conditions risk forfeiting their allocations, allowing the Commission to offer the blocks to reserve bidders in order of ranking.

The Seamless, Transparent Process

From the outset of the bidding, the process was designed to reduce opacity. A fully digital system allowed investors to access data, submit applications and interact with regulators online, making the entire exercise easier to track and less prone to human interference.

One of the most notable steps was the decision to stream the commercial bid conference live. As the most critical stage of the process, it gave investors, civil society groups, journalists and the general public the opportunity to follow proceedings in real time. Every bid and score was openly displayed, replacing secrecy with visibility.

Industry watchers and experts have continued to commend the exercise, describing it as a clear improvement on previous rounds. Many point to the open bidding system and live-streamed process as signs of a genuine commitment to accountability. Analysts say the strict use of defined criteria and the willingness to let results stand on merit has gone a long way in restoring investor confidence.

Under the PIA framework, the licensing process has moved away from discretionary awards to a competitive system guided by clear rules and measurable criteria. Unlike in the past, where high signature bonuses were often the focus, this round placed greater emphasis on technical capacity, financial strength, and the ability to develop assets efficiently. As a result, signature bonuses were relatively moderate, ranging between $3 million and $7 million, with more attention given to long-term value rather than immediate revenue.

Another key feature was the enforcement of strict post-award conditions, reinforcing regulatory discipline and ensuring that awarded assets are actively developed rather than held for speculation.

The commission also avoided forcing outcomes where interest was low, choosing instead to retain unallocated blocks for further evaluation before re-offering them under improved conditions.

Overall, reactions from industry stakeholders have been largely positive. Many see the exercise as professionally conducted, transparent and comparable to global standards, with renewed confidence in Nigeria’s upstream investment environment.

While some analysts note that the real test will be whether winning bidders follow through on development commitments, the 2025 licensing round has already set a new benchmark.

More than just another bidding exercise, it signals a shift; one that suggests Nigeria’s oil sector may finally be moving away from “business as usual” towards a more transparent, accountable and investor-friendly future.