FG opens 40 oil blocks in 2026 licensing round as NUPRC tightens ownership rules

The Federal Government has opened 40 oil blocks to investors in the 2026 licensing round, covering land, shallow water and deepwater terrains. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the round, saying it wants fresh investment in the upstream sector.

The offer comes as Nigeria's crude oil and condensate production has risen to 1.82 million barrels per day. The commission also said 120 approved development plans currently represent about $47.6 billion in investments.

What bidders must show

NUPRC Chief Executive Oritsemeyiwa Eyesan said the 40 blocks will go to qualified investors. Prospective buyers must demonstrate technical competence, financial capability and the commitment to develop the assets.

The licensing round was approved by President Bola Tinubu and the Minister of Petroleum Resources.

The commission is also tightening transparency. Companies seeking blocks must disclose their beneficial owners. The NUPRC plans to release more details on its evaluation methodology and publish the results of the process.

Eyesan said the commission wants the exercise to be more transparent and predictable, stressing that the allocation of petroleum acreage should no longer be discretionary.

2025 round drew 200 bids

The 2026 round follows strong interest in last year's exercise. According to Eyesan, 143 companies submitted 200 bids in the 2025 licensing round, and 31 companies emerged as winners of 37 blocks.

The regulator also reported rising investor interest in frontier basins outside the traditional Niger Delta. The Anambra Basin, Benue Trough, Chad Basin and Benin Basin were among the areas that drew attention.

Since the Petroleum Industry Act took effect in 2021, the NUPRC has conducted three licensing exercises: the 2022 Deep Offshore Mini Bid Round, the 2024 Nigerian Licensing Round and the 2025 Nigerian Licensing Round. Those exercises produced 57 Petroleum Prospecting Licences.

The NUPRC said full details of the 40 blocks, qualification requirements and application procedures will be published on its website and a dedicated licensing portal.

Why it matters

Nigeria needs fresh upstream capital to lift output and shore up oil earnings, which remain the backbone of government revenue and foreign exchange supply. A transparent, predictable bid process matters for the naira because any delay or dispute over acreage slows the flow of dollars that oil investment eventually brings. For Nigerian service companies and contractors, new awards mean work, but only if winners move from licences to actual drilling.

In related news, Nigerian oil company Walcot Group signed a petroleum-sharing agreement with the oil regulator for three oil blocks. The deal with the Angolan National Agency for Petroleum, Gas and Biofuels came after Walcot's successful bid for three oil mining licences. The licences hold an estimated three billion barrels of crude oil spanning several square kilometres.