The Federal Government has slashed the signature bonus for the 2025 oil block licensing round to between $3 million and $7 million, a significant drop from the flat $10 million per block charged in the 2024 bid round.
According to the Frequently Asked Questions document released virtually by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the new regime represents a 70% to 30% reduction, depending on block category—a move aimed at lowering entry barriers for investors.
The document stated: “The Nigerian government has graciously reduced the signature bonus to between $3 million and $7 million. All bidders are required to submit bids within this range as approved by the Minister of Petroleum Resources.”
The Commission clarified that the designated signature bonus account remains US dollar–denominated, not in naira.
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Score-Based Bid Evaluation
NUPRC said the 2025 licensing round will adopt a score-based system, evaluating bidders using parameters such as:
- Signature bonus (within the prescribed limit)
- Work programme and unit cost per barrel
- Professionalism and technical capability
- Human capacity and operational competence
- Bank guarantees and financial strength
- Corporate governance structure
- Green energy and decarbonisation commitments
Financial Requirements
To qualify, entities must meet minimum financial standards depending on block type:
Deep offshore blocks
- Average annual turnover of $100 million, or
- Minimum cash-at-bank of $100 million, or
- Bank guarantee of $100 million
Onshore & shallow water blocks
- Average annual turnover of $40 million, or
- Minimum cash-at-bank of $40 million, or
- Bank guarantee of $40 million
Newly incorporated firms may participate through parent company guarantees at the same value thresholds.
Participation Limits
NUPRC emphasized that no bidder—whether individually or within a consortium—may apply for more than two assets in total. Companies with direct or indirect equity or management involvement in multiple consortiums will have all such applications aggregated and counted as a single bid.
Technical Competence Criteria
Applicants will be assessed based on experience in:
- Geological & geophysical operations
- Drilling and well engineering
- Reservoir management
- Production technology
- Development planning
- Facilities engineering
The revised signature bonus and clearer qualification framework signal the government’s intent to attract more investors, widen participation, and improve competitiveness in the upcoming 2025 bid round
