Nigeria has launched its 2026 oil and gas licensing round, offering 40 blocks across onshore, shallow-water and deepwater areas as the country seeks to attract new investment and increase crude oil and natural gas production.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the bidding round on Wednesday after receiving approval from President Bola Tinubu, who also oversees the petroleum resources ministry. The regulator said detailed information on the blocks, bidding requirements and eligibility criteria would be made available through a dedicated licensing-round portal and its official website.
NUPRC Chief Executive Oritsemeyiwa Eyesan said the latest round would incorporate stronger transparency requirements aimed at improving investor confidence and ensuring greater accountability in the allocation of oil and gas assets. Under the new measures, companies participating in the bidding process will be required to disclose their beneficial owners. The commission will also provide more information about its evaluation procedures and publish bidding results more comprehensively.
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Production challenges
The reforms come as Nigeria seeks to strengthen its position in the global upstream oil and gas market, where countries are competing for investment to explore, develop and produce hydrocarbon resources. Despite its substantial petroleum reserves, Nigeria has faced persistent production challenges linked to underinvestment, crude theft, infrastructure disruptions and operational constraints.
Restoring existing production capacity is among the regulator’s immediate priorities. Eyesan identified approximately 788,000 barrels per day of shut-in production across 63 operators that Nigeria is seeking to bring back online. Recovering these volumes could help improve output from existing assets while new projects progress through development.
The commission is also working to advance offshore developments with an estimated investment value of between $30 billion and $50 billion towards final investment decisions. Progress on these projects could support future production growth, generate additional government revenue and create opportunities for companies operating across the oil and gas supply chain.
Alongside crude oil production, Nigeria is prioritising increased domestic gas supply to support electricity generation, industrial activity and other uses. Expanding gas production and availability is central to efforts to meet local energy demand and strengthen the role of natural gas in the country’s economy.
The 2026 licensing round is expected to provide investors with opportunities to access new petroleum acreage while supporting Nigeria’s broader efforts to revitalise its upstream industry. However, the extent of investment generated will depend on the commercial potential of the blocks, prevailing market conditions and the ability of successful bidders to finance and develop their assets. By combining new acreage offerings with stronger disclosure requirements, Nigeria is seeking to attract credible investors and translate its petroleum resources into sustainable production and economic benefits.
