Nigeria has launched its 2026 licensing round as part of a broader effort to address long-standing underinvestment in its upstream sector and across Africa more widely. The Nigerian Upstream Petroleum Regulatory Commission opened the tender in January, making 50 oil and gas blocks available. These include 19 shallow water blocks, 15 onshore blocks, 15 frontier blocks, and one deepwater block.
The federal government is targeting more than $10 billion in new upstream capital, with plans to bring idle assets back into use and raise production levels. This follows signs of gradual improvement in security and operating conditions. Data shows crude oil losses dropped to 9,600 barrels per day in July last year, the lowest figure 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.
Regulators are placing particular focus on oil blocks that have remained inactive for years due to policy uncertainty and weak infrastructure. The licensing round is built around the Petroleum Industry Act of 2021, which introduced clearer fiscal and contractual terms aimed at reducing risk for investors and lowering dependence on fuel imports. Activity in the upstream segment has also gained support from the start of operations at the Dangote Refinery, which is expected to increase demand for locally produced crude and encourage further exploration and development.
Nigeria, like several other African producers, still holds large volumes of undeveloped oil and gas resources. With interest returning to frontier basins across the continent this year, officials view the licensing round as an opportunity to reposition the country within the global upstream market, even as competition for capital remains intense.
source: pumps-africa.com
African Energy Council