The Federal Government has reduced the entry application cost for oil block bidders to $3m as part of a renewed push to attract fresh investment into Nigeria’s upstream petroleum sector.
Okay News reports that the Nigerian Upstream Petroleum Regulatory Commission confirmed the review, saying the decision was taken to remove obstacles that previously discouraged both local and foreign operators from participating in licensing rounds.
The commission said the revised fee aligns Nigeria with other competitive oil-producing jurisdictions. It noted that the adjustment covers data access, technical evaluation, and the initial bidding stage, which investors had long considered too expensive.
According to the NUPRC, “This adjustment is part of ongoing reforms targeted at removing barriers and ensuring Nigeria remains a favourable destination for upstream investment.” The regulator said the move became necessary after stakeholders repeatedly argued that high costs limited participation.
The agency stated that the upcoming licensing round will still follow strict transparency requirements, adding that only companies with proven technical and financial capacity will move forward in the process. It said the government expects increased interest from indigenous operators who were previously unable to afford the old rate.
Some industry analysts noted that while the reduction could improve participation, Nigeria must still address concerns around security, regulation, and operating costs for the reforms to yield stronger results. Others said the measure signals a broader attempt by the government to rebuild investor confidence at a time when global exploration spending is shifting toward more stable environments.
The NUPRC added that it is holding further consultations with the Ministry of Petroleum Resources on timelines for the next bid round, which will be announced after ongoing engagements with stakeholders.
