FG warns investors in the 2025 oil licensing round that all risks are borne by bidders, with no refunds or exchanges allowed under the law

The Federal Government has warned prospective investors in the 2025 oil licensing round that all risks and costs arising from the bidding process will be borne entirely by the companies involved, with no refunds of signature bonuses or exchanges of oil assets under any circumstances.

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Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri issued the warning at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) pre-bid conference in Lagos on Wednesday, which drew a large audience both physically and online.

The conference aimed to brief potential bidders on available assets, the legal framework, and the risks associated with the licensing process.

Lokpobiri said the era when licences were acquired for speculation or prestige was over, stressing that licences are government assets meant for active development.

He recounted previous complaints from bidders seeking refunds or alternative assets, stating clearly that such requests cannot be accommodated under the Petroleum Industry Act.

“Once a bid is completed and an award is made in line with the law, the technical and commercial risks rest entirely with the bidder. The government under any law has no obligation to refund your bidding fees or signature bonuses because you did not find oil or only found gas,” Lokpobiri said.

The minister also criticised operators who hold licences without developing them, describing licences as instruments of value creation rather than trophies.

He urged companies lacking sufficient capital to collaborate with credible partners to ensure the viability of their bids, while noting that hydrocarbons would remain a central part of the global energy mix for decades.

Echoing the minister’s position, NUPRC Chief Executive Oritsemeyiwa Eyesan said reforms under the Petroleum Industry Act have eliminated block-sitting practices.

“If you do not work your blocks, they will be taken from you. Many assets on offer today are recovered fallow fields,” she said.

Eyesan announced a reduction in the signature bonus approved by President Bola Tinubu to lower entry barriers and adjustments to other pre-first-oil fees.

She also revealed plans to commence the 2026 bid round alongside the 2025 process to ensure continuity.

Beyond licensing, Eyesan unveiled a reform agenda aimed at accelerating oil production, improving regulatory efficiency, and tightening hydrocarbon accountability.

She said the government targets crude oil output of three million barrels per day by 2030.

The NUPRC has launched a 90-day programme to fast-track approvals for near-ready Field Development Plans, well interventions, rig mobilisation, and other projects capable of delivering early barrels.

The commission will also issue quarterly progress reports and implement digital workflows for permitting and data submissions.

Eyesan outlined three pillars for the upstream sector: production optimisation and revenue expansion; regulatory predictability and speed; and safe, governed, and sustainable operations.

Operators with mature opportunities are encouraged to submit projects before the end of the first quarter of 2026.

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Nigeria, Africa’s largest oil producer, has faced declining output due to underinvestment, oil theft, and regulatory delays, but the government’s reforms are designed to restore investor confidence and reverse the trend.