Nigeria Announces Harmonized Criteria to Drive Upstream Sector Investments
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), under the leadership of Engr. Gbenga Komolafe, has announced the harmonization of criteria for Nigeria’s upcoming oil and gas licensing rounds. This strategic move aims to stimulate fresh investments in the country’s upstream sector. The harmonized criteria will apply to both the 2022/23 Mini Bid Round and the 2024 Licensing Rounds, aligning procedures to attract broader participation and enhance transparency.
Previously, in 2022, former President Muhammadu Buhari approved the inclusion of deep offshore blocks in the 2022/23 Mini Bid Round, alongside various onshore and continental shelf blocks slated for the 2024 Licensing Round. This initiative was designed to expand opportunities for exploration and development across Nigeria’s diverse oil and gas landscapes.
However, to bolster investor confidence and streamline the bidding process, Engr. Gbenga Komolafe has secured approval from President Bola Tinubu, who also serves as the petroleum minister. This approval reflects President Tinubu’s commitment to fostering an attractive investment climate in the upstream oil and gas sector.
Additionally, the government has implemented favorable fiscal regimes and capped entry fees, including signature bonuses, to reduce barriers to entry for prospective bidders in both licensing rounds. This strategic alignment of criteria and reduction of entry barriers underscore Nigeria’s proactive stance in promoting transparency, investment attractiveness, and sustainable growth in its vital oil and gas industry.
