The Federal Government has warned prospective investors in the 2025 oil licensing round that it will not refund signature bonuses or allow exchanges of oil assets under any circumstances, insisting that all risks associated with bidding rest entirely with the companies involved.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, issued the warning on Wednesday at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) pre-bid conference held in Lagos.
The conference, which drew participants both physically and online, was organised to brief investors on available assets, the legal framework governing the bid round, and the risks inherent in the process.
Lokpobiri said the era when oil licences were acquired for speculation, prestige, or resale was over, stressing that licences are government assets meant to be actively developed.
He recalled challenges arising from the 2020 bid round, where some successful bidders later approached the government seeking refunds of registration fees and signature bonuses.
“It is clearly stated that if you go for any bid round, the registration fee is not refundable. But some people still came to my office demanding refunds,” the minister said.
He also disclosed that some bidders complained that the assets awarded to them did not meet expectations and demanded alternative acreages.
“I want to state very clearly that the Petroleum Industry Act does not provide for asset exchanges or refunds on these grounds,” Lokpobiri said.
According to him, once a bid is concluded and an award is made in line with the law, all technical and commercial risks lie with the bidder.
“The government under any law has no obligation to refund your bidding fees or your signature bonuses because you eventually didn’t see oil or you only found gas,” he declared.
Lokpobiri further criticised the practice of holding oil blocks without development, describing licences as tools for value creation rather than personal trophies.
He noted that some individuals had held licences for decades without adding value to the assets, warning that such practices would no longer be tolerated.
The minister emphasised that the 2025 licensing round is firmly anchored on the Petroleum Industry Act, particularly Sections 73 and 74, which mandate transparent, competitive, and non-discriminatory awards based on technical, financial, and work programme criteria.
He advised companies lacking sufficient capital to partner with credible investors to strengthen their bids, adding that hydrocarbons would remain a major component of global energy supply for decades.
“Fossil fuel resources will never go away. They will constitute over 50 per cent of global energy sources for the foreseeable future,” Lokpobiri said.
Supporting the minister’s position, NUPRC Chief Executive, Oritsemeyiwa Eyesan, said reforms under the PIA have eliminated practices that previously encouraged asset hoarding.
“With the advent of the PIA, if you do not work your blocks, they will be taken from you. Many of the assets on offer today are recovered as fallow fields,” she said.
Eyesan announced a revision of the signature bonus, approved by President Bola Tinubu, to reduce entry barriers for investors, alongside adjustments to other pre-first-oil fees.
She also disclosed that the commission plans to begin preliminary processes for the 2026 bid round alongside the 2025 round to ensure continuity.
Beyond licensing, Eyesan unveiled reforms aimed at boosting oil production, improving regulatory efficiency, and strengthening hydrocarbon accountability as Nigeria targets crude oil output of three million barrels per day by 2030.
She revealed that the commission has launched a 90-day programme to fast-track approvals for near-ready Field Development Plans, well interventions, and other “quick-win” projects capable of delivering early production.
Eyesan said the commission would issue quarterly progress reports and encouraged operators with high-impact opportunities to submit their projects promptly.
Her agenda for the upstream sector, she explained, is built on production optimisation, regulatory predictability, and safe and sustainable operations, in line with President Tinubu’s Renewed Hope Agenda.
Nigeria, Africa’s largest oil producer, has struggled with declining output due to underinvestment, oil theft, and regulatory bottlenecks. However, the Federal Government says ongoing reforms are designed to restore investor confidence and reverse the downward trend.
