The Federal Government has lowered the signature bonus for oil blocks from $10 million to between $3 million and $7 million ahead of the 2025 licensing round.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed the move on its website, stating that it is part of ongoing efforts to reduce barriers for investors.

“Interested in one of the oil blocks listed for the 2025 Licensing Round? The Nigerian government has reduced the signature bonus to between $3 million and $7 million. All bidders are required to submit bids within this approved range,” the commission said.

In 2024, the government had reduced the signature bonus for successful bidders from about $200 million to $10 million. NUPRC’s Chief Executive, Gbenga Komolafe, explained that a survey of international benchmarks, including countries like Brazil, indicated the need to make Nigeria’s entry costs more competitive.

A signature bonus is a non-refundable payment made to the government upon signing an agreement, required of firms awarded oil or gas assets. Previously, investments in deepwater attracted $10 million, while shallow water and onshore assets required $7 million. The amounts have now been lowered to $7 million and $3 million, respectively.

The commission also noted that the signature bonus must be paid in U.S. dollars, not naira. “The designated signature bonus account is U.S. dollar-denominated,” the NUPRC added.