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The regulator warned that failure to meet the payment deadline in accordance with the provisions of the Petroleum Industry Act (PIA) would result in severe consequences, including forfeiture of bid guarantees and withdrawal of provisional awards.
KaNo—
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a stern warning to 31 companies that emerged successful bidders in the 2025 oil and gas licensing round, directing them to remit their signature bonuses within the stipulated timeframe or risk losing their provisional awards.
The directive comes exactly one month after the commission conducted the commercial bid conference in Abuja, where the companies secured 37 oil and gas blocks.
In a notice seen on Sunday, the NUPRC confirmed that the compliance process for the payment of signature bonuses had already commenced following the issuance of provisional award letters to the successful bidders.
“Exactly a month ago, the NUPRC hosted the 2025 commercial bid conference in Abuja where 31 companies emerged winners of 37 oil and gas blocks. Having issued the winners with the provisional awards, compliance with the payment of signature bonuses has already begun,” the commission stated.
The regulator warned that failure to meet the payment deadline in accordance with the provisions of the Petroleum Industry Act (PIA) would result in severe consequences, including forfeiture of bid guarantees and withdrawal of provisional awards.
“Winners who fail to pay signature bonuses within the stipulated time frame in line with the Petroleum Industry Act will forfeit their bid guarantee and lose their provisional awards to the reserve bidders,” the commission added.
37 Blocks Awarded
The 2025 licensing round featured a total of 50 oil blocks, out of which 37 were successfully awarded.
Among the awarded assets are blocks ranging from PPL 2A29 to PPL 2A62 in the Niger Delta, PPL 2010 in the deep offshore, PPL 308 in the Benin Basin, PPL 900 to PPL 903 in the Anambra Basin, PPL 700 in the Chad Basin, and PPL 800 and PPL 801 in the Benue Trough.
According to the NUPRC, a total of 143 companies participated in the licensing round, submitting nearly 200 bids for the available blocks.
However, 13 of the blocks did not attract any bids, underscoring varying levels of investor interest across different basins.
Bidders To Pay Signature Bonuses
Under the provisions of the PIA and the applicable licensing guidelines, successful bidders are required to pay signature bonuses ranging between $3 million and $7 million per block.
In addition to the signature bonuses, the companies must also fulfil other post-award obligations, including the provision of guarantees, payment of first-year rents, and compliance with all regulatory requirements within the prescribed timeframe.
The commission noted that the payment of the signature bonus is a critical component of the award process and serves as a demonstration of the financial capability and commitment of the winning bidders to develop the assets.
Given that the provisional award letters were issued immediately after the commercial bid conference held on July 21, 2026, the deadline for payment is expected to fall on October 19, 2026.
This implies that about 30 days have already elapsed, leaving the companies with approximately 60 days to fulfil their financial commitments.
Failure to comply within this period will trigger an automatic revocation of the provisional award, with the asset reassigned to the next-ranked reserve bidder.
The Chief Executive Officer of the commission, Mrs Oritsemeyiwa Eyesan, had earlier urged the successful bidders to expedite their payments and move swiftly to commence exploration and development activities on the awarded blocks.
Industry analysts say the enforcement of strict timelines for payment is critical to maintaining investor discipline and ensuring that awarded assets do not remain idle due to speculative bidding.
NUPRC Proposes Crude Swap
Meanwhile, the commission has also disclosed that it is consulting with key stakeholders in the oil and gas industry on a proposed domestic crude oil and gas swap arrangement aimed at reducing supply costs and improving access to crude for local refineries.
Eyesan made this known during a courtesy visit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja, noting that the initiative is expected to enhance compliance with the Domestic Crude Supply Obligation (DCSO) and Domestic Gas Supply Obligation (DGSO).
In a statement issued by the NUPRC’s Head of Media and Corporate Communications, Eniola Akinkuotu, the commission explained that the proposed swap arrangement would allow producers and refiners to optimise existing logistics networks, thereby eliminating inefficiencies associated with transporting crude oil over long distances.
“The Nigerian Upstream Petroleum Regulatory Commission is consulting widely with stakeholders in the industry on the idea of a domestic crude oil and gas swap that would reduce cost and increase availability of products in the country,” the statement read.
Explaining the concept, Eyesan noted that the arrangement would enable crude producers located near export terminals to meet the obligations of those closer to domestic refineries through a structured exchange mechanism.
“So, instead of trying to move from one end to the other, we just agree on a swap arrangement, and there is a mechanism for them netting off,” she said.
The proposal comes amid improved crude supply to domestic refineries. Data from the NUPRC showed that 53.7 million barrels of crude oil were delivered to local refiners between April and June 2026, representing 97.4 per cent performance under the DCSO during the second quarter of the year.
Despite this improvement, some refiners have continued to rely on imported crude oil, citing high pricing of locally supplied crude as a major challenge. Industry players have repeatedly argued that domestic crude is sometimes sold at a premium, making it less competitive compared to imported alternatives.
Eyesan acknowledged these concerns, stating that the persistence of imports underscores the need for more efficient allocation and delivery mechanisms within the domestic market.
She, however, noted that discussions on the proposed swap arrangement are still at an early stage and that all modalities would be thoroughly examined before implementation.
The NUPRC boss also reaffirmed the commission’s commitment to strengthening collaboration with other regulators to address challenges across the petroleum value chain.
Responding, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Rabiu Abdullahi Umar, commended the NUPRC for conducting what he described as a seamless and credible 2025 licensing round.
He also praised the commission’s efforts in improving compliance with domestic crude supply obligations, noting that sustained progress in this area would be critical to the growth and sustainability of Nigeria’s refining sector. However, he emphasised that pricing issues remain a key factor that must be addressed to fully optimise the benefits of local crude supply.
