Tinubu Approves 2026 Oil Licensing Round, Offers Fresh Hope to Unsuccessful Bidders in Ongoing Exercise

President Bola Tinubu has approved the commencement of a new oil and gas licensing round for 2026, a move designed to widen investment opportunities in Nigeria's upstream petroleum sector and offer a second chance to companies that fail to secure assets in the ongoing 2025 exercise.

The approval sets the stage for what will be Nigeria's third consecutive competitive bid round in recent years, reinforcing the Federal Government's push to sustain annual licensing exercises under the Petroleum Industry Act.

News of the presidential approval was confirmed separately by the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, and the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri. Both officials made the disclosure at the ongoing 2025 Commercial Bid Conference holding in Abuja on Tuesday, an event marking the opening of commercial bids submitted by companies competing for oil and gas assets under the current licensing round.

Addressing investors at the conference, Eyesan urged bidders who may not emerge successful in the present exercise not to lose heart, noting that opportunities within Nigeria's upstream sector extend well beyond the assets currently up for grabs. She revealed that President Tinubu had already given the commission the go-ahead to begin preparations for the 2026 licensing round, assuring participants that lessons drawn from the current process could be applied to strengthen future bids.

She also commended the multidisciplinary evaluation committee and NUPRC staff for steering the licensing exercise through its various stages, while pledging that the commission would continue to apply its published criteria fairly, consistently, and transparently in dealing with all parties involved.

Lokpobiri, in his own remarks, reaffirmed the President's approval for the fresh licensing round and assured investors that government would maintain a transparent and open process for participation in the sector. He encouraged companies unable to secure assets in the current round to begin preparing for the next one, describing the arrangement as proof of government's commitment to sustained, competitive access to Nigeria's oil blocks.

The minister struck an optimistic tone about Nigeria's standing as an investment destination, pointing to the country's strategic location and shifting dynamics in global energy markets. He linked Nigeria's growing appeal partly to tensions in the Gulf region involving Iran and the United States, arguing that this had increased the strategic value of Nigerian assets in the Gulf of Guinea.

Lokpobiri further highlighted how the Petroleum Industry Act had reshaped the allocation of oil blocks by removing discretionary awards, a practice that previously allowed licenses to be assigned without a transparent, competitive process. While acknowledging that the framework limits ministerial discretion, he expressed support for a system built on merit, stressing that only companies with genuine financial and technical capacity to develop the assets should emerge successful.

He cautioned against speculative acquisition of oil blocks by parties with no real intention or capacity to develop them, describing such conduct as a pattern seen in the past where investors sought partnerships that never materialized. According to him, the current process is designed to ensure that licenses go to serious operators rather than becoming mere trophies.

The 2025 Licensing Round, which forms the backdrop to the new 2026 announcement, was launched by the NUPRC on November 11, 2025, in line with the Petroleum Industry Act 2021. It covers 50 oil and gas blocks spread across seven sedimentary basins, including the Niger Delta onshore and shallow offshore areas, deep offshore blocks, and assets in the Benin Basin, Anambra Basin, Chad Basin, and the Benue Trough.

Since its launch, the 2025 round has passed through several stages, beginning with the opening of the bid portal in December 2025, followed by a pre-bid conference, prequalification screening, technical evaluation, and now the ongoing commercial bid conference, which precedes the formal announcement of successful bidders.

With the 2026 round now approved, the Federal Government appears set to maintain its strategy of hosting annual licensing exercises, a move officials say is aimed at drawing sustained investment into Nigeria's oil and gas industry, boosting exploration activities, and ultimately increasing the country's crude oil production capacity under the regulatory architecture established by the Petroleum Industry Act.