Nigeria’s oil and gas industry (“Industry”) has continued to witness significant transformation driven by the implementation of the Petroleum Industry Act 2021 (“PIA” or the “Act"). With crude oil reserves standing at 37.28 billion barrels and gas reserves estimated at 210.54 trillion cubic feet (tcf) as of January 1, 2025 , the Industry remains a key driver of Nigeria’s economic growth and a viable destination for investments.

The upstream value chain of the Industry has recently witnessed heightened activities driven by Executive Orders from the President, as well as various regulations and guidelines by the regulators, aimed at strengthening transparency and governance, enhancing local content participation, and providing targeted investment incentives. These developments, with the current trend in mergers and acquisitions involving strategic oil and gas assets and the successful completion of the 2024 oil block licensing round, have further energised the Industry.

This article examines key provisions under the PIA and Petroleum Licensing Round Regulations 2022 (the “Regulations”) regarding the bidding process and issuance of concessions for oil block operations in Nigeria.

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