The Federal Government has declared an end to speculative or status-symbol oil licenses, cautioning investors in the 2025 oil licensing round against mistakes or miscalculations, as no refunds or asset swaps will be entertained.

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, emphasized at the NUPRC pre-bid conference in Lagos that commercial and technical risks lie with bidders once a license is awarded. He warned against holding licenses without developing them, saying:

“Some people have had licenses for 20 years and are very proud, going around the world in suits, saying ‘look, I have a license.’ What value have you added?”

Lokpobiri stressed that the Petroleum Industry Act (PIA) requires petroleum prospecting licenses and mining leases to be awarded transparently and based on financial, technical, and work program capabilities.

NUPRC Chief Executive, Oritsemeyiwa Eyesan, supported the minister’s position, noting reforms that prevent idle blocks and ensure sustainable operations. She also announced adjustments to the signature bonus and other fees to reduce entry barriers, urging technically competent operators to manage the assets.

Eyesan outlined initiatives to enhance regulatory efficiency, including:

• Running licensing and approvals like a service with time-bound decisions.
• Implementing digital workflows for permitting, reporting, and data submissions.
• Strengthening host community engagement through the Host Community Development Trust (HCDT).
• Monitoring compliance with the PIA within 12 months.
• Issuing quarterly progress reports to track high-impact shut-in fields.

She highlighted the 2026 licensing round will commence immediately, running preliminary processes alongside the 2025 round to maintain continuity. The goal is to increase production, recover shut-in volumes, accelerate time-to-first oil, and ensure operational transparency and sustainability.

The reforms aim to make Nigeria a preferred investment destination, improve hydrocarbon accounting, reduce delays in approvals, and foster collaboration among operators, service providers, and investors.