The Federal Government has revised the fiscal entry terms for prospective upstream investors by introducing a lower signature bonus requirement for bidders participating in the ongoing licensing round.
The adjustment is aimed at improving competitiveness, widening investor participation and aligning Nigeria’s bid framework with global benchmarks.
Under the new arrangement, bidders will now be required to submit offers within a reduced financial band approved by the petroleum authorities.
The revised structure replaces previous higher thresholds and is designed to support capital inflow into onshore, shallow-water and deepwater acreage.
Regulators said the updated financial terms form part of broader market reforms intended to reposition the upstream sector for new exploration activity, enhance transparency in bid evaluation and reduce barriers that had previously limited entry to qualified investors.
The government affirmed that the revised bonus schedule is consistent with international practice and reflects current investment realities across major oil jurisdictions.
The licensing round covers multiple blocks across diverse geological terrains, including frontier areas, conventional onshore assets, shallow-water prospects and deep offshore opportunities. Successful applicants will qualify for prospecting rights that allow technical work programmes, exploratory drilling and appraisal activities across the awarded acreage.
The allocation process retains a multi-stage structure comprising prequalification, technical assessment and commercial evaluation.
Applicants must satisfy regulatory criteria before advancing to the commercial submission phase.
Authorities emphasised that bid submissions will be assessed strictly in accordance with published guidelines to maintain fairness and eliminate discretionary practices.
The regulatory framework also sets limitations on the number of assets any bidder may pursue to ensure broad participation and reduce concentration risk.
Participants linked to more than the permitted number of applications through equity, management involvement or consortium membership will be treated as a single bidder for compliance purposes.
The Federal Government is positioning the licensing round as a strategic opportunity to unlock additional resource potential, deepen reserves replacement and stimulate upstream investment at a time when global capital allocation is increasingly competitive.
Officials said the revised bonus structure complements ongoing reforms and is expected to attract diversified interest from independents, partnerships and established operators.