In a decisive step to rejuvenate its upstream oil and gas sector, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that its 2025 licensing round will begin on December 1, 2025. The move aims to draw fresh capital into the sector, support the implementation of the Petroleum Industry Act (PIA), and propel the government’s ambition via the “Project One Million Barrels per Day” to raise production by one million barrels per day.
At a forum held in London and attended by major oil industry figures, bank representatives and investors, NUPRC Chief Executive Gbenga Komolafe acknowledged that “funding remained the biggest challenge in Nigeria’s upstream sector,” and that the regulator intends to connect interested stakeholders to address this. The announcement follows the approval of the licensing initiative by the Minister of Petroleum Resources, under the framework of the PIA. The new round is structured to enhance government revenue, shift the sector’s structure amid continuing divestments by foreign companies, and reinforce confidence in the regulatory regime.
“Following the approval of the Minister of Petroleum Resources in line with the Petroleum Industry Act, we are ready to commence the 2025 licensing round beginning from December 1, 2025,” Komolafe declared. The forum was designed to bring together industry participants, aiming to overcome the siloed structure of past dealings. As Komolafe noted: “One of the factors that affected business is that activities were happening in silos but the NUPRC now realises the need to bring everyone together.”
Production data cited revealed that Nigeria’s average crude oil output stands at approximately 1.71 million barrels per day, peaking at 1.83 million bpd, evidence of the administration’s reforms gaining traction. Since the beginning of 2025, 46 Field Development Plans (FDPs) have already been approved and rig counts have risen to more than 60, with at least 40 actively contributing. With additional infrastructure such as Floating Production, Storage and Offloading (FPSO) units, Floating Storage and Offloading (FSO) vessels, modular offshore production units and early production facilities needing investment, the regulator believes this is a favourable time for existing and new investors to participate.
Meanwhile, parliament has given assurances that it will not undermine investment by modifying the PIA arbitrarily. For instance, the House Committee on Petroleum Resources (Upstream) has pledged its support for business-friendly legislation, reinforcing the perception of regulatory stability. This licensing round is therefore positioned as a key test of the PIA’s ability to deliver a transparent, competitive bidding environment that can bolster investor confidence.
By unlocking new upstream contracts and attracting foreign and domestic capital, Nigeria expects to increase oil revenues and reduce foreign-exchange vulnerability. The fresh investment round could reinforce growth-multipliers through job creation, higher export earnings and increased fiscal receipts, bolstering economic growth beyond the oil sector.
