The Federal Government has reduced the signature bonus for the 2025 oil licensing round, lowering costs from $10m to between $3m and $7m, according to an update posted on the website of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
NUPRC said the decision is aimed at easing entry barriers for prospective investors.
“Interested in any of the oil blocks listed for the 2025 Licensing Round? The Nigerian government has now reduced the signature bonus to between $3m and $7m,” the commission announced.
“All bidders must submit offers within this approved range, as directed by the Minister of Petroleum.”
In 2024, the government had already cut signature bonuses from about $200m to $10m. NUPRC Chief Executive Gbenga Komolafe said the move followed a review of global practices, including what countries like Brazil charge investors, which revealed the need for further reductions.
A signature bonus is a non-refundable payment made to the government once an agreement for an oil or gas asset is signed. Companies awarded exploration blocks are required to pay this fee.
Previously, deepwater assets attracted a $10m bonus, while shallow water and onshore assets required $7m. The updated figures lower these fees further to $7m for deepwater and $3m for shallow and onshore.
NUPRC also clarified that signature bonuses must be paid in US dollars, as the designated account is dollar-denominated.
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