Nigeria Moves Forward with 2026 Oil and Gas Licensing Round
According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria – Africa’s largest crude oil producer and a long‑standing OPEC member – will launch its 2026 oil and gas license tender round in the third quarter of the year. The announcement follows a steady rise in upstream output and renewed confidence from international investors.
Recent Production Gains
Nigeria’s crude oil output climbed to 1.663 million barrels per day (bpd) in April 2026, up from 1.546 million bpd in March. Of this total, crude oil alone accounted for 1.488 million bpd, bringing the country close to its OPEC‑allocated quota of 1.5 million bpd.
These figures, reported by NUPRC and corroborated by OPEC’s monthly market report, indicate a rebound in upstream performance after several years of volatility caused by operational delays and security challenges.
Key Drivers of the Increase
- Improved reliability of major offshore assets such as Agbami, Akpo and Egina.
- Implementation of the Petroleum Industry Act (PIA) reforms that have streamlined fiscal terms and enhanced transparency.
- Continued inflow of capital from both domestic and international operators seeking to exploit deep‑water and marginal field opportunities.
2026 Licensing Round: Process and Timing
Ms. Oritsemeyiwa Eyesan, Managing Director of NUPRC, confirmed that the Commission has secured approval from the Minister of Petroleum Resources under the PIA to proceed with the 2026 tender. Speaking after a visit by Meren Energy (formerly Africa Oil) to NUPRC’s Abuja headquarters on 3 June 2026, she outlined the upcoming steps:
- Completion of the commercial offering phase for the 2025 licensing round in July 2026.
- Immediate commencement of preparations for the 2026 round, with a target launch no later than Q3 2026.
- Emphasis on a transparent, competitive bidding process designed to attract quality investors while safeguarding national interests.
Ms. Eyesan noted that the strong participation observed in the 2025 round – marked by numerous bids from both indigenous and foreign companies – serves as evidence that Nigeria’s upstream sector is regaining its appeal.
Industry Perspective: Meren Energy’s Commitment
Oliver Quinn, Chief Executive Officer of Meren Energy Group, highlighted the strategic importance of Nigeria to the company’s portfolio. Quinn disclosed that over the past two decades Meren Energy has invested approximately US$11 billion in the Agbami, Akpo and Egina fields, while contributing roughly US$4 billion in taxes and royalties to the Nigerian state.
He affirmed that Nigeria remains Meren Energy’s top African market, citing the high quality of its deep‑water assets and the supportive regulatory environment fostered by recent PIA reforms. Quinn also noted that Meren Energy was the first Nigerian producer to sell crude oil to the Dangote Refinery and intends to continue meeting domestic supply commitments as long as market prices remain favourable.
Implications for the Nigerian Oil and Gas Sector
The forthcoming licensing round is expected to:
- Unlock additional reserves in underexplored offshore and onshore blocks.
- Stimulate job creation and local content development through mandatory Nigerian participation clauses.
- Enhance government revenue streams via signature bonuses, royalties and corporate taxes under the PIA framework.
- Reinforce Nigeria’s position as a key supplier within OPEC and the global energy market.
Analysts from the African Energy Chamber and the International Energy Agency (IEA) have pointed to Nigeria’s improved fiscal terms and ongoing security amelioration as critical factors that could drive sustained upstream growth through the remainder of the decade.
Conclusion
Nigeria’s decision to proceed with the 2026 oil and gas licensing round reflects a broader trend of recovery and reform in the nation’s petroleum sector. Backed by verified production data, regulatory approvals, and concrete commitments from major operators such as Meren Energy, the upcoming tender offers a transparent pathway for both domestic and foreign investment. Stakeholders are encouraged to monitor the NUPRC’s official communications for detailed block information, bidding guidelines, and timelines as the process unfolds in the coming months.
