Nigeria's 2025 oil licensing round: Transparency put to the test

Nigeria's upstream petroleum regulator, the Nigerian National Upstream Petroleum Regulatory Commission (NUPRC), has revealed the 31 companies awarded 37 oil and gas blocks following the 2025 Licensing Round. The selection process utilized a computer-based bid evaluation system, which observers noted was designed to eliminate human interference and ensure a rigorous evaluation.

Despite the implemented measures, questions regarding transparency are inherent in any licensing process involving significant national resources. The NUPRC emphasizes that true transparency lies in clear rules, public disclosure, and a process that can withstand independent scrutiny. The journey began in 2025 when President Bola Ahmed Tinubu approved the round, with the official announcement and portal launch occurring in November and December 2025, respectively. The NUPRC also published notices in national and foreign newspapers, adhering to the Petroleum Industry Act (PIA) 2021 and the 2025 Licensing Round Guidelines.

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The true measure of transparency is not the absence of scrutiny, but the presence of clear rules, public disclosure, and a process that can withstand independent examination.

This licensing round holds significant importance for Nigeria's economic and energy future. Sustained exploration and accelerated development of hydrocarbon resources are vital for unlocking economic potential and expanding gas utilization. New upstream investments are critical for replacing reserves, bolstering long-term energy security, and enhancing export capacity. At the time of the round's launch, Nigeria's proven crude oil and condensate reserves stood at 37.01 billion barrels, with natural gas reserves estimated at 215.19 trillion cubic feet.

The NUPRC estimates that the 50 assets offered in the 2025 Licensing Round have the potential to add approximately 500 million barrels to the nation's reserves if successfully explored and developed. This prospect is particularly significant as the government seeks to diversify revenue streams to meet increasing budgetary demands. Attracting credible investors to develop these untapped assets is therefore an economic and fiscal imperative. The blocks awarded span diverse terrains, including the Niger Delta Onshore and Shallow Water, Deep Offshore, and the Benin Basin Onshore.

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The significance of this projection cannot be overstated. At a time when the Federal Government is seeking to expand revenue sources to meet growing budgetary commitments, attracting credible investors to develop untapped oil and gas assets has become both an economic and fiscal imperative.