NUPRC to Launch 2026 Oil Licensing Round November 20, Offers 40 Blocks to Investors

ABUJA: The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced plans to launch the 2026 oil and gas licensing round on November 20, with 40 oil and gas blocks on offer to investors, as the Federal Government seeks to stimulate fresh investment and expand activities in the upstream petroleum sector.

The licensing round is expected to provide new opportunities for local and international investors to participate in Nigeria’s petroleum industry, particularly as the country seeks to increase crude oil production, unlock its substantial natural gas resources and strengthen its energy security.

The Chief Executive of the NUPRC, Mrs Oritsemeyiwa Eyesan, announced the development during a roundtable discussion at the 2026 Abu Dhabi International Petroleum Exhibition and Conference in the United Arab Emirates.

The discussion, titled Energy Sovereignty in an Interconnected World: Aligning National Priorities, Markets and Global Security, brought together industry stakeholders to examine the relationship between national energy priorities, global markets and energy security.

Eyesan urged international investors to take advantage of Nigeria’s forthcoming licensing round, describing the country as an increasingly competitive destination for petroleum investment amid prevailing global energy uncertainties.

According to a statement issued by the Head of Media and Corporate Communications of the NUPRC, Mr Eniola Akinkuotu, the commission’s chief executive said Nigeria had strengthened its investment environment through regulatory reforms, improved security arrangements, fiscal incentives and efforts to reduce operating costs.

She disclosed that the licensing round’s bid portal would officially open on November 20, 2026, marking the beginning of the process for interested investors to participate.

“Nigeria offers a stable climate amid the global energy tensions and therefore urged investors to look towards Nigeria by taking advantage of the 2026 Licensing Round, which has 40 oil and gas blocks on offer,” the statement quoted her as saying.

“We are expecting investors to turn to Nigeria. We are going in for another licensing round, and we will be launching our bid portal on November 20. We expect to see interested investors because the environment is a lot more competitive.”

Eyesan said the government had established what she described as an attractive fiscal framework designed to encourage investment and make Nigeria more competitive in the international petroleum industry.

“We have set a very attractive fiscal framework for investors. The entire environment is a lot more secure. We have been able to manage costs with a lot of incentives for investors, and we expect to see investors take up the offer when we open the portal,” she stated.

The announcement comes as Nigeria continues to pursue an ambitious strategy to attract investment into its oil and gas industry, which remains a major source of foreign exchange earnings, government revenue and economic activity.

The Federal Government has been seeking to reverse years of underinvestment, operational disruptions, crude oil theft, pipeline vandalism and other challenges that have constrained production and weakened the country’s ability to fully benefit from its petroleum resources.

The forthcoming licensing round is therefore expected to provide an important opportunity to attract new capital, encourage exploration and development activities, and strengthen Nigeria’s long-term production capacity.

PIA Reforms, Executive Orders Boost Investment Climate

Eyesan attributed the improvement in Nigeria’s investment climate to reforms introduced under the Petroleum Industry Act (PIA), signed into law in 2021, as well as executive orders issued by President Bola Tinubu to address longstanding bottlenecks in the petroleum industry.

The PIA was designed to restructure Nigeria’s petroleum sector, improve regulatory transparency, establish clearer institutional responsibilities and create a more commercially attractive environment for investors.

The legislation also introduced a new regulatory framework intended to improve accountability, strengthen governance and encourage private-sector participation across the petroleum value chain.

According to Eyesan, the reforms have helped position Nigeria to compete more effectively with other petroleum-producing countries seeking international investment.

She said the NUPRC had conducted at least four successful licensing rounds between 2021 and 2026, reflecting the commission’s continued efforts to open up investment opportunities in the upstream sector.

The latest round is expected to build on the previous exercises while offering investors access to additional petroleum assets.

The regulatory reforms are particularly significant at a time when international oil companies are increasingly reassessing their portfolios and directing capital towards countries with predictable fiscal policies, improved security, lower operating costs and commercially viable opportunities.

Nigeria’s ability to attract investors will depend not only on the availability of petroleum blocks but also on the country’s capacity to sustain regulatory certainty, improve infrastructure and address operational risks.

For investors, the licensing round could offer opportunities to participate in exploration and production activities while benefiting from the reforms introduced under the current petroleum industry framework.

Nigeria Seeks To Reverse Upstream Investment Decline

The licensing round comes against the background of Nigeria’s longstanding efforts to increase oil production and strengthen its position among major petroleum-producing nations.

Although the country possesses substantial hydrocarbon resources, production has been affected by a combination of operational, technical, commercial and security challenges.

Crude oil theft, pipeline sabotage, production disruptions, ageing infrastructure and high operating costs have historically discouraged investment and limited output.

The departure or divestment of some international oil companies from onshore and shallow-water operations has also created opportunities for indigenous petroleum companies to expand their participation in the industry.

However, increasing production requires substantial investment in exploration, drilling, development infrastructure and operational capabilities.

The NUPRC’s licensing round is intended to provide an avenue for fresh capital to enter the sector, particularly through investors willing to develop available petroleum assets.

The success of the exercise will depend on the quality of the blocks offered, the commercial attractiveness of the fiscal terms, the transparency of the bidding process and the capacity of successful bidders to mobilise funds and commence operations.

Beyond attracting investment, the government will also be looking to ensure that the licensing exercise translates into actual production, increased revenue and broader economic benefits.

Industry analysts generally regard the availability of capital, predictable regulatory conditions and efficient project execution as critical factors in converting petroleum reserves into commercially productive assets.

Nigeria’s 215 Trillion Cubic Feet Gas Reserves

Beyond crude oil, Eyesan highlighted Nigeria’s enormous natural gas potential, describing the country as strategically positioned to become a major supplier to domestic and international markets.

She disclosed that Nigeria had approximately 215 trillion cubic feet of natural gas reserves, although daily production remained below seven billion cubic feet.

The figures underscore the gap between Nigeria’s enormous gas resources and the volume currently being produced and supplied to the market.

According to the NUPRC chief executive, the completion of major gas infrastructure projects would help unlock additional supplies for Nigeria and neighbouring countries.

She said the country had recently completed significant infrastructure projects expected to improve gas availability and strengthen supply across the domestic market and the wider sub-region.

“The stars are already aligned. For gas infrastructure, we just completed very major infrastructure projects that will unlock gas supply in the country and the sub-region,” she stated.

The expansion of gas infrastructure is expected to support power generation, industrial development, manufacturing, fertiliser production and other economic activities that depend on reliable energy supplies.

Natural gas is also increasingly viewed as an important component of Nigeria’s energy transition strategy, given its potential to provide relatively cleaner energy for industrial and domestic applications compared with some other fossil fuels.

However, the development of the gas sector requires investment in processing facilities, pipelines, transportation infrastructure and distribution networks.

The government has therefore continued to encourage private-sector participation in gas exploration, production and infrastructure development.

Nigeria-Morocco, Trans-Sahara Pipelines To Expand Exports

Eyesan also highlighted the potential of two major proposed gas export projects: the Nigeria-Morocco Atlantic Gas Pipeline and the Trans-Sahara Gas Pipeline.

The projects are expected to create opportunities for Nigeria to expand gas exports, strengthen regional energy cooperation and supply additional markets in Europe.

The Nigeria-Morocco Atlantic Gas Pipeline is designed to connect Nigeria’s gas resources with countries along the West African coast, potentially extending towards Morocco and European markets.

The Trans-Sahara Gas Pipeline, meanwhile, is intended to provide another route for transporting Nigerian gas through Niger and Algeria towards Europe.

Although both projects face substantial financing, security, technical and construction challenges, their completion could significantly alter the regional gas supply landscape.

Eyesan said the proposed pipelines would enable Nigeria to serve both regional and international markets.

“We talk about two major projects on the drawing board to move gas through the Nigeria-Morocco Atlantic Gas Pipeline and Trans-Sahara Gas Pipeline.

“Again, this gas will go somewhere in Europe and will also meet regional demands. So, Nigeria is positioned to meet not just domestic supply,” she stated.

The projects could provide Nigeria with additional export revenue while strengthening the country’s position in negotiations with international energy buyers.

They also offer the prospect of expanding gas availability across West Africa, where energy shortages and infrastructure limitations continue to constrain industrial development in several countries.

For Nigeria, the challenge will be to balance export ambitions with domestic requirements, particularly the need to ensure adequate gas supplies for power generation, manufacturing and other industries.

Global Energy Uncertainties Create New Opportunities

The licensing round is being launched at a time of heightened uncertainty in global energy markets, with countries increasingly focused on securing reliable supplies of oil and gas.

Geopolitical tensions, supply disruptions and changing energy policies have reinforced the importance of energy security for major consuming and producing nations.

Eyesan’s appeal to international investors reflects Nigeria’s determination to position itself as a reliable destination for petroleum investment during this period.

The country’s substantial oil and gas resources, established petroleum industry and strategic location in West Africa could offer investors opportunities to diversify their energy portfolios.

However, Nigeria will need to demonstrate that its improved investment framework can deliver predictable returns and reduce the risks associated with petroleum operations.

The government’s commitment to regulatory stability, security, infrastructure development and efficient project approvals will therefore remain critical to the success of the licensing round.

The November 20 launch is expected to mark another important step in Nigeria’s efforts to reposition its upstream petroleum sector, attract international capital and increase production.

With 40 blocks available, the exercise could provide a significant opportunity for investors seeking exposure to Nigeria’s oil and gas resources.

For the Federal Government, the ultimate objective extends beyond awarding petroleum licences. It is to ensure that the new investments translate into higher production, increased revenue, employment opportunities, industrial growth and improved energy security.

The extent to which the licensing round achieves these objectives will depend on the ability of investors and regulators to convert the opportunities on offer into commercially viable petroleum projects.