Nigeria is preparing to open its upstream oil sector to a fresh wave of investors, with President Bola Tinubu granting approval for the 2026 oil block licensing round — the second consecutive annual bid cycle under his administration.
The Announcement
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed on Wednesday that presidential approval had been secured to launch the 2026 licensing round before the end of the year. The exercise is targeted to commence by the third quarter of 2026.
NUPRC Commission Chief Executive Mrs Oritsemeyiwa Eyesan made the disclosure during a strategic visit by Meren Energy — formerly known as Africa Oil — to the commission's headquarters in Abuja.
Where the 2025 Round Stands
Before the 2026 cycle kicks off, the ongoing 2025 licensing round is still in its final stages. Eyesan confirmed that the commercial bid for the current round is scheduled for July 2026, with preparations described as being in advanced stages.
She noted that growing investor interest in the 2025 round signals renewed confidence in Nigeria's upstream sector — a sentiment she attributed directly to the reform agenda of the Tinubu administration.
"We are in the process of finalising the 2026 launch, which will happen latest by the third quarter. This is the make-or-break point, and we want to make sure we make it," she said.
Meren Energy: A Major Vote of Confidence
The visit by Meren Energy carried significant weight. The company's Group Chief Executive, Dr Oliver Quinn, revealed that the firm has deployed approximately $11 billion in capital into Nigerian assets over the past two decades — including operations at the world-class Agbami, Akpo, and Egina fields — with around $4 billion paid in taxes and royalties to the Nigerian government.
Quinn described Nigeria as the core of Meren Energy's African business, adding that ongoing reforms had reinforced the company's confidence to pursue new asset divestments and participate in upcoming licensing rounds.
In a notable milestone, Quinn also disclosed that Meren Energy was the first company to supply crude oil to the Dangote Petroleum Refinery — and that the firm intends to continue meeting domestic crude supply obligations where commercially viable.
The Bigger Picture
Nigeria's push to run back-to-back licensing rounds reflects a deliberate strategy to reverse years of upstream underinvestment and close the gap between the country's production potential and its actual output.
The move comes against the backdrop of global energy transition pressures, which are prompting oil-producing nations to fast-track asset monetisation before long-term demand forecasts become less favourable.
For context on how Nigeria's energy sector reforms connect to broader investment trends, our analysis of the Strait of Hormuz oil disruption examines how global supply dynamics are reshaping upstream decisions, while our guide on AI investment tools in Nigeria covers how technology is transforming how investors evaluate opportunities in the sector.
What to Watch
The July commercial bid for the 2025 round will be the immediate test of investor appetite. A strong turnout would validate the administration's reform narrative and set a confident tone heading into the 2026 cycle.
Industry observers will also be watching whether Meren Energy and its partners move to increase production at existing assets — a development that could meaningfully lift Nigeria's crude output figures in the near term.
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