FG Targets Higher Oil Output Through Licensing Round

The Federal Government expects the 2025 Licensing Round to deliver an additional 300,000 barrels per day of crude oil and condensate production within the next three years. The projected increase is expected to support Nigeria’s goal of raising national oil output to three million barrels per day by 2030.

Speaking at the Commercial Bid Conference in Abuja, NUPRC Chief Executive Mrs. Oritsemeyiwa Eyesan said the 2025 Licensing Round could also add around 500 million barrels to Nigeria’s oil reserves. She noted that the assets would strengthen the country’s estimated 37.01 billion barrels of crude oil and condensate reserves alongside its 215.19 trillion cubic feet of gas reserves. She said, “The assets available in this licensing round have the potential to add about 500 million barrels to Nigeria’s reserves. Over the next three years, once successfully developed, these assets are expected to contribute a minimum of 300,000 barrels per day of crude oil and condensate production.”

According to Eyesan, about 300 companies showed interest in the 2025 Licensing Round. After the prequalification process, 196 firms qualified, while 143 companies submitted 200 technical and commercial bids covering 37 assets. She explained that 13 blocks received no bids because several were located in frontier basins that still require further de-risking before attracting investors. She said, “Some of these assets are in frontier basins; they have not yet been de-risked. We were not surprised when we saw that some of these assets returned with no bidders. We will do more work to de-risk these assets and bring them back to the market.”

She said the process follows President Bola Tinubu’s directive to ensure transparency and global best practices. Successful bidders will be selected through a weighted assessment of technical and commercial scores instead of the highest signature bonus. She also stressed, “Our message is clear: drill or drop. Work programmes must be implemented, financial commitments honoured and agreed milestones achieved.”

Eyesan confirmed that President Tinubu has approved another licensing round for 2026. Successful bidders must satisfy post-award conditions within 90 days or lose their licences to reserve bidders.

Reacting to the announcement, OGSPAN National President Mazi Colman Obasi said stronger upstream investment should increase oil and gas production, which currently stands at about 1.7 million barrels per day, including condensate. He added, “The increased upstream investments will undoubtedly translate into higher oil and gas production, which currently stands at about 1.7 million barrels per day, including condensate.” He also noted, “The Federal Government’s ?68.32 trillion 2026 budget is based on a crude oil production target of 1.84 million bpd. With sustained upstream investments and successful execution of ongoing projects, Nigeria is expected to record meaningful improvements in oil production over time.”

Petroleum economist Prof. Iledare Wumi expressed measured confidence in the plan, saying, “My reaction is one of cautious optimism. Nigeria is not visionless; rather, it has been execution-deficient. Dreams alone do not transform nations. It takes transformational leadership, institutional discipline and sustained execution to turn vision into reality.”

Do you think the 2025 Licensing Round will help Nigeria achieve its long-term oil production target?