Nigeria’s NUPRC: unlocking upstream growth with transparency

November 28, 2025

Gbenga Olu Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), talks to The Energy Year about how the 2025 licensing round is designed to accelerate oil production and how digitalisation is enhancing transparency and investor confidence. NUPRC is the national regulator for Nigeria’s upstream petroleum sector.

What can we expect from the 2025 licensing round, and why is it such a critical moment for Nigeria’s upstream sector?
The 2025 licensing round marks a major milestone for Nigeria and its energy sector, building on the momentum created by the phenomenal success of the 2024 round. In 2024, all blocks offered were awarded, and all winners fully paid their signature bonuses and submitted their bid guarantees. These guarantees provide assurance that investors are committed to returning and initiating development activities.
This strong level of investor participation reflects growing confidence in the reforms undertaken by the government under President Bola Ahmed Tinubu. These reforms, aligned with the Petroleum Industry Act (PIA), have established a transparent, stable and predictable regulatory regime. From the NUPRC’s standpoint, significant effort has been made to create a conducive environment that fosters investor confidence, resulting in a regulatory climate that is fair, open and competitive.
Nigeria continues to emphasise at both local and international forums that it is a destination of choice for upstream investment. The 2024 results validate this message, and expectations are high that the 2025 round will be even more successful. The process is fully driven by digital technology to ensure transparency and adherence to global best practices.
The round is also strategically aligned with Nigeria’s broader goal of increasing oil production as part of Project 1MMBOPD, which aims to add 1 million bopd. The 2025 licensing round is a key mechanism for achieving this, helping to grow reserves and production volumes over both the short and long term.
Nigeria officially kicked off the 2025 round during the Project 1MMBOPD investment forum held in London. Launching the round in London, a global energy and financial hub, served as a strategic roadshow to raise awareness and engage the international investment community.
The message delivered was clear: Nigeria is ready, transparent and competitive. Digitalisation reinforces this message by allowing transparency to be visibly demonstrated. As we stated during the forum, “what you see is what you get” – a level of openness that enhances investor confidence and ensures the process is both efficient and trustworthy.

How does the upcoming round tie into Nigeria’s oil production goals, particularly its 2026 target of 2.5 million bopd?
The strategic importance of the 2025 licensing round lies in its inclusion of assets with strong near-term development potential. Many of the assets on offer are fallow fields – existing discoveries that had remained undeveloped – which have been recovered through the implementation of the PIA’s drill-or-drop policy. These fields are now being reintroduced into the bidding basket.
A number of these assets can be brought onstream within 12–18 months. Since the discoveries already exist, companies can re-enter and swiftly commence production. This accelerated timeline contributes directly to achieving Project 1MMBOPD target. It represents a practical, results-oriented pathway to expanding production.
By applying the same transparent, digitalised process used in 2024 and by offering assets capable of quick development, the round presents a highly attractive opportunity for investors. Its structure and philosophy are deliberately designed to deliver immediate production gains while simultaneously supporting Nigeria’s long-term ambition of reaching 2.5 million bopd by 2026.

 

How would you describe the outlook for Nigeria’s upstream sector over the next several years?
The outlook is very promising. Nigeria is a mature oil and gas jurisdiction with more than seven decades of exploration and production. That history has given us deep local capacity and content. Our local workforce is skilled, our terrain is proven and prolific, and we have longstanding relationships with IOCs already operating here.
These factors combine to give Nigeria a unique edge. Investors can enter with lower geological risk, less exploratory uncertainty and reduced capex and opex. Our terrain makes discovery easier and more cost-effective, which is a major attraction for global companies.
In addition, Nigeria’s geographic location is a strategic advantage. With over 850 kilometres of coastline, we are closer to European markets than many of our competitors. That means quicker delivery, lower transport costs and more efficient market access. We are well positioned to serve Europe and other global markets efficiently.
Our young population – 60% of Nigerians are youth – provides a strong future labour force. We also operate within a stable democracy, which further supports long-term investment. All of this is underpinned by the Petroleum Industry Act, which gives regulatory clarity and certainty. At the NUPRC, we’ve been deliberate in sustaining a favourable investment climate. These fundamentals put Nigeria in a very strong position.

What reforms or policies have made the biggest difference in improving Nigeria’s attractiveness to investors?
One major reform has been the removal of entry barriers. President Tinubu has ensured that investors are no longer burdened by excessive entry costs. Today, a token signature fee is sufficient to acquire a block. Our focus has shifted from gatekeeping to field development. We want investors to deploy their capital into drilling, not paperwork.
We’ve also made major strides in improving the operating environment. Host communities now enjoy more stable and productive relationships with operators. This harmony is key – it guarantees a peaceful environment and minimises disruption. We’ve made this a regulatory priority.
And of course, digitalisation has been a game-changer. By conducting the licensing round online, in full transparency, we have removed ambiguity from the process. Everything is visible, verifiable and standardised. This gives investors confidence that they are engaging in a fair process. It also speeds things up and reduces inefficiencies.
Combined, these reforms – low entry cost, digital transparency, host community harmony – position Nigeria as a top-tier investment destination.

Finally, what message do you have for prospective investors considering Nigeria in 2025 and beyond?
My message is simple: Nigeria is open for business, and we are ready to work with investors to grow production and deliver value. This is a country with world-class reserves, a youthful and capable population and a government fully committed to reform.
We have already demonstrated, through the 2024 licensing round, that we can deliver transparent, efficient and fair processes. The assets on offer in 2025 include near-term development opportunities that can help operators get to first oil within 12-18 months. That kind of timeline is rare in this industry.
We encourage serious investors to consider Nigeria. With the regulatory clarity provided by the Petroleum Industry Act, the reforms implemented by this administration and the ongoing digitalisation of our processes, we are offering something unique: a mature, accessible and opportunity-rich oil and gas market. This is the time to invest in Nigeria.

Read our latest insights on:

• Nigeria