The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that the era of oil companies holding exploration licences for years without developing assets is over, following the introduction of the “drill or drop” provision under the Petroleum Industry Act (PIA).
Commission Chief Executive Oritsemeyiwa Eyesan disclosed this while receiving a delegation from the Petroleum Directorate of Sierra Leone at the commission’s Abuja headquarters, emphasising that the reform compels operators to commence development activities within a specified timeframe or surrender their licences to the government.
“One of the beauties of the PIA is Section 94, which compels operators to either commence work or relinquish the licence, what we call the drill or drop provision,” Eyesan said. “The PIA has opened opportunities for both small and big players, curing the problem of uncertainties and returning dormant assets to the government’s portfolio.”
Eyesan also expressed satisfaction with investor interest in Nigeria’s 2025 oil licensing round, noting that strong participation has been recorded despite stricter bidding conditions, including a limit of two blocks per company, whether bidding individually or in a consortium.
“For the 2025 licensing round, we have 50 oil blocks on offer. The outcome of the pre-qualification submissions demonstrates there is indeed a very good appetite for the bid round,” she said.
To strengthen transparency and investor confidence, the NUPRC engaged an independent audit firm to review and validate the integrity of the digital bidding system. Eyesan assured that the results of the validation would be made public.
The ongoing licensing round, formally launched in December 2025 with President Bola Tinubu’s approval, involves blocks across the Niger Delta, Anambra, Bida, Benue Trough, and Chad basins, aiming to boost exploration activity, expand crude oil reserves, and support long-term production growth. The pre-qualification stage concluded on February 27, 2026, with successful companies expected to proceed to technical and commercial bidding.
Foday Mansaray, Director-General of the Petroleum Directorate of Sierra Leone, said his country is keen to learn from Nigeria’s regulatory experience to develop its hydrocarbon sector. He proposed stronger energy collaboration, including a Memorandum of Understanding to formalise regulatory and sectoral cooperation.
The 2025 oil licensing round is scheduled to run for about eight months, from November 2025 to July 2026, culminating in the commercial bid conference and final approvals.
Eyesan highlighted that the reforms have ended the practice of operators sitting on licences for decades, which had slowed Nigeria’s exploration efforts, and have renewed investor confidence in the upstream petroleum sector.
