The Federal Government has announced a cap on bidding for its 50 oil blocks across onshore, shallow water, and deep offshore areas, limiting each bidder to a maximum of two blocks.

The new restriction, along with other guidelines, will be discussed during the Bid Conference and Roadshow scheduled for January 2026, giving local and foreign investors a clearer understanding of the process and encouraging participation.

According to guidelines obtained by Vanguard from the Nigerian Upstream Regulatory Commission (NUPRC):

“Notwithstanding paragraph 17.5 (b) or any other provision of the Guidelines, each Applicant, being an incorporated company, whether acting individually or as a member of any Consortium, shall be permitted to submit Bids in respect of not more than two (2) Blocks offered under the Licensing Round. Only one (1) Bid per Block may be submitted by any Applicant or Consortium, and duplicate or competing submissions for the same Block shall be rejected. Where an Applicant submits, participates in, or is otherwise connected to Bids in respect of more than two (2) Blocks, all additional Bids beyond the first two, in chronological order of submission, shall be deemed invalid and disqualified ab initio, without prejudice to any further regulatory sanctions the Commission may impose.”

The amendment aims to:

• Promote fairness and broader participation: Preventing “block warehousing” ensures that a larger pool of technically and financially qualified investors can access opportunities.
• Improve bid quality and delivery certainty: Limiting bidders to two blocks allows companies to focus resources on assets they can develop efficiently.
• Protect the integrity of the bidding process: The rules close potential loopholes that could allow companies to indirectly bid for multiple blocks through subsidiaries or consortiums.
• Align with global best practices: Regulators worldwide often impose bidder concentration limits to maintain competition, prevent speculative acquisitions, and ensure real workprogram delivery.

This policy signals the government’s intent to encourage responsible investment, enhance competition, and ensure timely exploration and development across Nigeria’s oil sector.