FG slashes oil block signature bonuses to attract investors — NUPRC

The Federal Government has significantly reduced oil block signature bonuses from about $100 million to $10 million in a bid to attract new investments into Nigeria’s upstream petroleum sector.

The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, announced the development on Thursday at the annual conference of the Association of Energy Correspondents of Nigeria (NAEC) in Lagos.

Komolafe said the reduction is part of a broader set of reforms designed to reposition Nigeria’s oil and gas industry for growth, transparency, and competitiveness.

“This single policy shift has enhanced investor confidence, enabled early field development, and reaffirmed Nigeria’s reputation as a transparent investment destination,” he said.

He added that the NUPRC has implemented a fully digital and transparent licensing process to eliminate human interference and promote efficiency during bid rounds.

According to him, the 2024 mini-bid round was conducted with minimal human contact, ensuring fairness and credibility in the process.

Komolafe also highlighted the Commission’s focus on production optimisation and enhanced oil recovery through support for brownfield projects and re-entry of shut-in wells.

“These interventions are expected to deliver an additional one million barrels of oil per day by 2027,” he stated.

The NUPRC boss further disclosed that crude oil theft had dropped by 90%—from 102,000 barrels per day in 2021 to 9,600 barrels as of September 2025—thanks to stronger collaboration with security agencies, private contractors, and host communities.

Komolafe said the Commission is also promoting host community development through the establishment of over 90 Host Communities Development Trusts (HCDTs) under the Petroleum Industry Act (PIA) 2021, ensuring direct benefits to oil-producing communities.

“This model promotes local ownership, stability, and production continuity — key elements of sustainable energy security,” he explained.

Speaking on Nigeria’s energy transition, Komolafe reiterated the country’s commitment to the “Decade of Gas” initiative, positioning gas as a catalyst for industrial growth and a bridge toward cleaner energy.

Citing data from the International Energy Agency (IEA), he noted that global upstream investments are projected to exceed $580 billion in 2025, adding that Nigeria is well-placed to attract a substantial share of that funding.

“While renewables will expand, hydrocarbons remain crucial to the industrialisation of developing nations. The goal is responsible and transparent production,” he said.

Komolafe emphasised the role of the media in shaping investor confidence, urging energy journalists to report developments accurately and responsibly.

Reflecting on the sector’s transformation, he recalled that the NUPRC inherited an industry plagued by declining investments and regulatory uncertainty.

“The passage of the Petroleum Industry Act in 2021 restored clarity, transparency, and predictability. Today, the foundation for an upstream rebound is firmly in place,” he affirmed.

He added that the global energy landscape is rapidly evolving, and Nigeria’s task is to align its hydrocarbon production with global sustainability standards while driving national growth.