By Ese Ufuoma
Nigeria is once again opening its doors to global investors with the launch of its 2025 oil licensing round, but this time, with a sharper focus, the spotlight is on underdeveloped oil blocks. It’s a strategic move aimed at unlocking hidden value in the country’s vast petroleum reserves while boosting production and attracting much-needed investment.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), led by Engr. Gbenga Komolafe formally announced the licensing round in May 2025. Unlike previous rounds, which focused heavily on frontier basins and high-profile fields, this year’s offering includes deep-water, onshore, and shallow water blocks that have either remained untouched or underutilised for years.
This approach aligns with Nigeria’s new upstream strategy under the Petroleum Industry Act (PIA), which emphasises optimisation over expansion, making the most of what the country already has before chasing new frontiers.
According to the NUPRC, 19 oil blocks are up for grabs in this round, many of which were previously awarded but later revoked due to inactivity, non-performance, or disputes. These blocks still hold significant potential and are now being reintroduced under more transparent and investor-friendly terms.
The decision to focus on underdeveloped blocks is both practical and economic. Nigeria is working hard to raise its crude oil production back to the 2 million barrels per day (bpd) target, after years of underproduction due to theft, sabotage, and lack of investment. Unlocking value from dormant assets could help bridge the production gap without the high costs associated with exploration in frontier areas.
There’s also the global energy transition to consider. With the world moving gradually toward cleaner energy, Nigeria wants to monetise its oil resources faster before demand begins to decline. Bringing old or inactive fields back to life is one of the quickest ways to do that.
To support the licensing round, the NUPRC is offering virtual data rooms, 3D seismic data, and detailed geological reports to help investors make informed decisions. It has also pledged a more transparent bid process, improved fiscal terms, and stronger legal guarantees, all aimed at boosting investor confidence.
Importantly, the 2025 round is being packaged alongside the 2024 mini-bid round, which featured deep offshore blocks. Together, they reflect a more deliberate, phased approach to licensing that prioritises efficiency and long-term value.
However, success will depend on more than just the quality of the blocks. The government must ensure that the process is transparent, timely, and free from the bureaucratic delays that have plagued past rounds. Investors are watching closely, and many are cautiously optimistic.
For Nigeria, this licensing round is more than a business transaction. It’s a test of the country’s ability to manage its resources wisely, attract global partners, and deliver results in a competitive and evolving energy landscape.
If done right, the 2025 oil licensing round could breathe new life into Nigeria’s upstream sector, unlocking forgotten assets, boosting government revenue, and strengthening the country’s position as one of Africa’s energy leaders.