Nigeria Opens 2026 Licensing Round Offering 50 Oil and Gas Blocks to Boost Upstream Investment
Nigeria has officially launched its 2026 upstream licensing round, part of a broader strategy to tackle long-standing underinvestment in the country’s oil and gas sector and across Africa.
The Nigerian Upstream Petroleum Regulatory Commission opened the tender in January, making 50 blocks available, including 19 shallow water blocks, 15 onshore blocks, 15 frontier blocks, and one deepwater block.
The federal government aims to attract over $10 billion in new upstream investment, revive idle assets, and increase crude production. Recent improvements in security and operating conditions support these goals.
Crude oil losses fell to 9,600 barrels per day in July 2025—the lowest in 16 years—while average daily production reached 1.64 million barrels per day in the third quarter, according to the National Bureau of Statistics.
The licensing round prioritizes blocks that have remained inactive due to policy uncertainty and weak infrastructure.
It operates under the Petroleum Industry Act of 2021, which provides clearer fiscal and contractual terms to reduce investor risk and lessen reliance on fuel imports.
The start of operations at the Dangote Refinery is also expected to drive demand for locally produced crude and encourage further exploration.
With substantial undeveloped oil and gas resources, Nigeria aims to reposition itself as a leading player in the global upstream market, attracting investment to frontier and conventional basins amid growing competition for capital.
