Introduction
On the 6th day of October 2026, the Nigeria Upstream Petroleum Regulatory Commission (NUPRC or ‘the Commission’) announced the formal launch and commencement of the 2026 Licensing Round in the Nigerian oil and gas sector. This announcement follows the conclusion of the 2025 licensing round and the award of the license to the emerging winners. The Commission stated that the 2026 licensing round will be made with 40 oil and gas blocks on offer across land, shallow water, and deep terrains. The 2026 licensing round aims to realise the Commission’s goal of unlocking the next phase of investment opportunity and transparency in the oil and gas sector. The Commission also expressed dedication to ensuring the licensing round procedures are open, competitive, fair, transparent, and predictable for all participating bidders.
This newsletter highlights the regulatory provisions for conducting licensing rounds within the upstream sector, the underlying investment opportunities, and their implications for local businesses.
The Role of the PIA and the Petroleum Licensing Round Regulation
In addition to the Petroleum Industry Act 2021 (PIA or ‘the Act’), the licensing rounds are also regulated by the Petroleum Licensing Round Regulations 2022 (PLRR or ‘the Regulation’) and the specific guidelines for each licensing round (e.g the Nigerian 2025 Licensing Round Guidelines). The Regulation sets out the general provisions and foundational procedures governing the Commission and the participating bidders before, during, and after the licensing rounds. The licensing round guideline is required to provide the anticipated calendar of events, the procedure for engaging bid participants and stakeholders, the nature of companies that cannot participate in the bidding process, the procedure for modifying the licensing round guidelines, and the provisions relating to participation by consortia. (Regulation 7 of PLRR 2022 and Section 75 PIA 2021)
It is important to note that the procedure for conducting the 2026 licensing round will be streamlined with the publication of the 2026 Licensing Round guidelines in due course.
The Regulation further specifies circumstances in which a company is disqualified from participating in a bidding process, including where: (Regulation 11 PLRR 2022)
- A company is prohibited or banned from participation in the licensing round or any bidding process by the Federal Government or any of its agencies
- A company has previously presented false information or forged documents
- A company with the same shareholders or is formed by the same persons as another company participating in the bid process for the same license or lease
- A company is indebted to the Government
- A company with an oil and gas asset has not operated continuously and in a business-like manner
- A company with a promoter or shareholder who is indebted to the Government.
Why should Investors pay attention?
With the commencement of the licensing round, the Commission invites foreign investors with technical competence and financial capacity to participate in the 2026 licensing round aimed at developing Nigeria’s petroleum industry and strengthening the economy.
The various opportunities available to foreign investors include:
- Access to petroleum acreage and potential exploration opportunities
- Technology transfer, technical expertise and collaboration with Nigerian businesses
- Joint ventures, financing, technical partnerships and capital participation.
Opportunities for businesses
The licensing round also establishes potential business opportunities for local businesses in the oil and gas sector such as engineering companies, equipment suppliers, logistics, legal advisers and consultants, financial institutions and oilfield service providers.
Conclusion
According to the publication, the Commission welcomes participation from any eligible investor that meets the prerequisite technical competence, financial capacity, and legal qualifications in the 2026 licensing round.
Stakeholders, investors and interested businesses are advised to pay attention to the Commission’s publication for specific qualification requirements, details of the blocks on offer and procedures for participation.
This newsletter is provided for general information purposes only and does not constitute legal, regulatory, or professional advice. While reasonable care has been taken in preparing this publication, readers are advised not to rely on its contents as a substitute for specific legal advice. Institutions and individuals are encouraged to consult their legal, compliance, or other professional advisers before acting on any information contained in this publication.
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