Nigeria has announced its 2026 licensing round as the country seeks to reverse decades of underinvestment across Africa’s upstream market. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) opened the new tender round for January, offering a diverse portfolio of 50 oil and gas blocks.
The blocks include; 19 shallow-water blocks, 15 onshore blocks, 15 frontier blocks, and one deepwater block. The federal government aims to attract more than $10 billion in upstream investment, revitalize dormant assets, and boost national production.
The initiative comes amid improving security and operational conditions in the sector. Nigeria’s crude oil losses fell to 9,600 barrels per day in July last year, the lowest level recorded in 16 years. According to the National Bureau of Statistics, average daily crude oil production reached 1.64 million barrels per day in the third quarter of last year.
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Petroleum Industry Act
Authorities are also targeting long-underutilized oil blocks that have remained undeveloped due to regulatory uncertainty and infrastructure challenges. The new licensing round is anchored in the Petroleum Industry Act (PIA) 2021, which provides a clearer contractual and fiscal framework designed to improve investor confidence and reduce reliance on imported energy.
Momentum in the upstream sector has been reinforced by the start of operations at the Dangote Refinery, which is expected to drive increased demand for domestic crude supply and support higher upstream activity.
Nigeria, like many African nations, holds vast untapped oil and gas reserves. With frontier basins across the continent expected to attract renewed interest this year, policymakers see the licensing round as a critical step in restoring Nigeria’s position as a leading upstream destination.
“The country should be seen as a business; hence a strategy for its growth, maintenance and sustainability must be ensured by its leadership,” said Tunde Kehinde, co-founder of Lidya.
Against the backdrop of geopolitical tensions, including the war in Ukraine and renewed uncertainty in global oil markets, Nigeria’s push to expand upstream production could provide a stabilizing influence at a time of heightened volatility.
