By: African Energy chamber

Nigeria’s upstream sector is gearing up for a pivotal moment as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) prepares to launch the 2025 oil licensing round on December 1. With investor sentiment gradually strengthening and operators hungry for new acreage, this latest round is shaping up to be a defining step in Nigeria’s effort to unlock undeveloped resources and reposition itself as one of Africa’s premier investment destinations.

NUPRC Commission Chief Executive Eng. Gbenga Komolafe reaffirmed the government’s commitment to openness and clarity during a meeting with executives from Italian energy firm Ludoil Energy at the Commission’s Abuja headquarters. The two parties had initially connected at this year’s African Energy Week 2025 – Africa’s premier investment platform for the energy sector – which paved the way for the detailed discussions in Abuja. Komolafe revealed that the bid portal will go live on the NUPRC website on December 1, following formal approval from President Bola Tinubu. He emphasized that the process would follow a two-stage model – starting with a technical evaluation before progressing to commercial bids for qualified applicants.

“The licensing round will be transparent and fair in line with the provisions of the Petroleum Industry Act of 2021,” stated Eng. Komolafe. “We do not discriminate. We invite all potential investors to participate.

The 2025 round comes at a transformative period for Nigeria’s energy industry. The Petroleum Industry Act (PIA) of 2021 has reshaped the regulatory environment, replacing the former Department of Petroleum Resources with the NUPRC and Nigerian Midstream and Downstream Petroleum Regulatory Authority and commercializing the Nigerian National Petroleum Company Ltd. This structural overhaul – combined with new tax incentives for gas, local content reforms and Nigeria’s “Decade of Gas” ambitions – sets the stage for a more efficient, investor-focused sector.

Nigeria’s Minister of State for Petroleum (Oil) Senator Heineken Lokpobiri has also endorsed the licensing round and the broader investor mobilization effort, citing it as a cornerstone of the country’s sectoral transformation. While receiving the delegation from Ludoil Energy, Senator Lokpobiri emphasized that Nigeria’s reforms provide a clear pathway for efficient, transparent and profitable operations for companies with expanding global footprints across the upstream, midstream and downstream sectors.

“Making our oil sector attractive to investors is a major measure in our ongoing transformation journey, and it is encouraging to see this effort yielding the anticipate results because our commitment to providing a conducive and profitable environmental remains sacrosanct,” he said, adding, “Our doors remain open to collaboration that drives progress, innovation and sustainable development.

At the heart of the new bid round is a strategic emphasis on gas-rich and fallow fields. Nigeria aims to unlock underdeveloped reserves, bolster domestic gas supply and accelerate energy transition goals. Authorities are targeting up to one million barrels per day in incremental capacity, supported by increased international interest, new final investment decisions exceeding $8 billion, and strong indigenous participation from companies like Seplat and Oando.

For potential bidders, the message is clear: Nigeria wants investment – and is willing to create the conditions to support it. Ludoil Energy’s leadership expressed enthusiasm about the upcoming round, noting Nigeria’s scale, resource potential and renewed regulatory stability.

“We are seeing Nigeria as our next target for growth because Nigeria is the largest producer in Africa,” Ludoil Energy Group Chief Technical Officer Paolo Fedeli said, adding, “Your next round of licensing is an opportunity for us.”

While security risks, infrastructure gaps and funding constraints remain challenges, the momentum behind Nigeria’s upstream revival is unmistakable. With clearer rules, digitized systems and a regulatory environment increasingly aligned with investor needs, the 2025 licensing round may well become the catalyst that accelerates Nigeria’s long-awaited production resurgence.