Business
FG Reduces Oil Block Entry Costs To $3M
As the 2025 licensing round gets underway, the Federal Government has reduced the signature bonus from $10m to $3m and $7m. The Nigerian Upstream Petroleum Regulatory Commission disclosed this in an update on its website.
According to the commission, this was part of the government’s efforts to reduce entry barriers. “Interested in one of the oil blocks listed for the 2025 Licensing Round? The Nigerian government has graciously reduced the signature bonus to between $3m and $7m.
“All bidders shall be required to submit a bid within a range of $3m and $7m as approved by the minister of petroleum for the reduction of entry barriers,” the commission said.
The PUNCH recalls that in 2024, the government slashed the signature bonus payable by successful bidders from around $200m to $10m. The Chief Executive of the Nigerian Upstream Regulatory Commission, Gbenga Komolafe, stated that the NUPRC surveyed what other countries like Brazil demand as signature bonuses from would-be investors and discovered the need to slash that of Nigeria.
A signature bonus is a non-refundable payment made by a contractor to the government upon the signing of an agreement. Firms who are awarded oil or gas sassets are expected to pay signature bonuses to the government.
The NUPRC disclosed last year that an investment in Deepwater would attract $10m as a signature bonus, while shallow water and onshore attract $7m. It appears the figures have been reduced further to $7m and $3m, respectively.
It was added that the signature bonus cannot be paid in naira. “The designated signature bonus account is United States dollar-denominated,” the NUPRC mentioned.
The regulator stated that the winners of this licensing round will be awarded a Petroleum Prospecting License, which confers to the holder the exclusive right to drill exploration and appraisal wells; the non-exclusive right to carry out petroleum exploration operations within the area provided for in the license; and the right to carry away and dispose of crude oil or natural gas won or extracted during the drilling of exploration or appraisal wells as a result of production tests.
It clarified that the license is for “an initial duration of three years, with a possible extension of another three years for onshore and shallow waters, while it is five years for deep water and frontier.”
The commission disclosed that it has adopted a two-stage bidding process for the award of the blocks, saying the bidding process shall comprise a qualification stage and a bid stage.
“The qualification stage involves the submission and evaluation of applications by interested parties or consortia in accordance with the Regulation and the Guidelines.
“Applicants shall provide all information required for this stage. Only applicants who are adjudged qualified and subsequently shortlisted by the commission shall proceed to the bid stage and will be required to execute a Confidentiality Agreement prior to participation.
“At the bid stage, shortlisted applicants or bidders shall submit their technical and commercial bids in accordance with the regulation, the guidelines, and any other bidding documents issued by the commission.”
The regulator warned that no bidder, whether participating individually or as a member of any consortium, shall submit applications for more than two assets in total across all applications.
“Participation in more than one consortium shall count towards this limit. For the avoidance of doubt, where a company has equity, direct or indirect ownership, or management involvement in multiple consortium vehicles, all such applications shall be aggregated and treated as a single bidder’s application,” it was stated.
NUPRC informed that there are 50 blocks covering the onshore, shallow water, and deep offshore areas.
“The blocks on offer are: PPL 2A29; PPL 2A30; PPL 2A31; PPL 2A32; PPL 2A33; PPL 2A34; PPL 2A35; PPL 2A36; PPL 2A37; PPL 2A38; PPL 2A39; PPL 2A40; PPL 2A41; PPL 2A42; PPL 2A43; PPL 2A44; PPL 2A45; PPL 2A46; PPL 2A47; PPL 2A48; PPL 2A49; PPL 2A50; PPL 2A51; PPL 2A52; PPL 2A53; PPL 2A54; PPL 2A55; PPL 2A56; PPL 2A57; PPL 2A58; PPL 2A59; PPL 2A60; PPL 2A61; PPL 2A62; PPL 2010; and PPL 307.”
Others are “PPL 308; PPL 309; PPL 900; PPL 901; PPL 902; PPL 903; PPL 700; PPL 701; PPL 702; PPL 703; PPL 800; PPL 801; PPL 802; and PPL 803.”
The Nigerian National Petroleum Company Limited has signed a fresh agreement with two Chinese firms in a move aimed at accelerating the long-delayed rehabilitation and commercial restart of Nigeria’s refineries, while opening a new window for technical equity partnerships.
The deal, structured as a Memorandum of Understanding, was signed with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, marking what the national oil company described as a “critical milestone” in its refinery transformation drive.
The agreement was executed in Jiaxing City, China, on April 30, 2026, by the Group Chief Executive Officer of NNPC Ltd, Bashir Bayo Ojulari, alongside the Chairman of Sanjiang Chemical Company, Guan Jianzhong, and Chairman of Xingcheng Industrial Park, Bill Bi.
According to a statement issued on Monday by the Chief Corporate Communications Officer of NNPC Ltd, Andy Odeh, the MoU sets the stage for a potential Technical Equity Partnership aimed at completing outstanding work at the Port Harcourt and Warri refineries, as well as ensuring their long-term operational efficiency.
The statement read, “The NNPC Ltd has signed a Memorandum of Understanding (MoU) with two Chinese companies, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, for collaboration through a potential Technical Equity Partnership in support of the completion and operation of the Port Harcourt and Warri Refineries.”
The national oil firm said the collaboration would go beyond rehabilitation, extending into full-scale operation and maintenance of the facilities to achieve “best-in-class, sustainable performance.”
It added that the arrangement would also explore expansion projects that would reposition the refineries to produce cleaner fuels and higher-value petroleum products, in line with evolving global standards.
Ojulari, speaking shortly after the signing ceremony, described the agreement as the outcome of more than six months of intensive technical and commercial engagements between NNPC and the Chinese firms.
He said, “All parties recognise mutually beneficial opportunities for the development and long-term sustainable profitability of NNPC’s refining assets in Nigeria, and the collective weight required for success.”
The NNPC boss stressed that the MoU represents a transition from traditional contractor-led rehabilitation to a more performance-driven partnership model anchored on shared risks and returns.
He added, “This is an important step on the journey towards identifying potential technical equity partner or partners to restart and expand NNPC’s refineries, and to explore opportunities in co-located petrochemicals and gas-based industries.”
The shift to a technical equity model signals a strategic departure from past refinery turnaround maintenance programmes, many of which failed to deliver lasting results despite significant financial outlays.
Under the proposed framework, the Chinese partners are expected to bring not just engineering expertise, but also operational discipline and investment capacity, aligning their returns with the performance of the refineries.The scope of the collaboration, as outlined by NNPC, includes the development of co-located gas-based industrial hubs, which could transform the Port Harcourt and Warri complexes into integrated energy and petrochemical centres.
Such hubs are expected to unlock additional value from Nigeria’s vast gas reserves, while supporting domestic manufacturing and export-oriented industries.
The company noted that while the MoU reflects a shared intention to advance discussions in good faith, any binding agreements would be subject to regulatory approvals and the conclusion of detailed commercial negotiations.
The latest deal aligns with Ojulari’s earlier position at the Nigeria International Energy Summit 2026, where he openly canvassed for global technical partners to take equity positions in Nigeria’s refining assets.
At the summit, Ojulari had argued that Nigeria’s refining challenges were not just financial, but deeply technical and operational, requiring experienced partners with proven track records.
He said, “What we are doing differently is moving away from just funding projects to bringing in partners who have skin in the game, partners who will operate, optimise, and guarantee performance.”
He further explained that the technical equity model would ensure accountability and efficiency, as partners would only profit when the refineries perform optimally.
He stated, “The days of spending billions on rehabilitation without sustainable output are behind us. We are now focused on partnerships that deliver value, technology transfer, and operational excellence.”
Ojulari also highlighted the importance of integrating refining with petrochemicals and gas-based industries, noting that modern refineries globally are designed as energy hubs rather than standalone fuel-processing plants.
Refineries must evolve into integrated industrial platforms. That is where the future lies, petrochemicals, fertilizers, gas monetisation. That is how you create real economic value,” he said.
Nigeria’s state-owned refineries, located in Port Harcourt, Warri, and Kaduna, have suffered decades of underperformance, frequent shutdowns, and failed rehabilitation efforts, forcing the country to rely heavily on imported petroleum products.
Despite multiple turnaround maintenance projects, the facilities have consistently operated far below capacity, raising concerns over efficiency, transparency, and value for money.
The current administration has prioritised refinery revival as part of its broader energy security strategy, while also supporting private sector investments such as the Dangote Refinery.
The NNPC’s renewed push for technical equity partners comes amid growing pressure to reduce fuel import dependence, stabilise domestic supply, and conserve foreign exchange.
With this latest China deal, the national oil company appears to be betting on a new partnership model, one that ties investment returns directly to performance, in a bid to finally unlock the long-elusive potential of Nigeria’s refining sector.
Fresh pressure is building in Nigeria’s fuel market after Dangote Refinery raised the price of petrol and halted supply operations.
The development has triggered concerns among marketers and consumers, as the impact is expected to ripple across the country in the coming days.
The refinery increased its ex-depot price of Premium Motor Spirit by N75 per litre. This pushed the loading cost from N1,200 per litre to N1,275 per litre.
Coastal supply price was also adjusted upward to N1,215 per litre. The new pricing structure has already begun to influence activities in the downstream sector.
A senior official at the facility confirmed the adjustment. According to the official, “Yes, the increase of PMS to N1,275 per litre is true. Coastal price is N1,215.”
The confirmation puts to rest earlier uncertainty among marketers who had reported sudden changes in depot pricing.
At the same time, operations were disrupted after the refinery suspended its Proforma Invoice process. This system is critical for product allocation and loading schedules.
Sources familiar with the situation said the process was halted at about 4:00 pm on Tuesday. The decision affected the normal flow of transactions within the loading system.
The disruption immediately led to a pause in the sale of petrol and Automotive Gas Oil. Trucks waiting for loading were reportedly left stranded, while marketers struggled to secure fresh allocations. The halt in supply has created anxiety across distribution channels.
Nigeria’s credit sector has, in the space of just a few years, moved from a niche fintech offering to a mainstream financial tool used by millions.
A major driver of this surge is mostly limited access to traditional bank loans, and the speed at which digital platforms can deliver cash when it is needed most.
By mid-2025, the market will have expanded sharply, with approved digital lenders rising to about 425 as of May 2025, up from 320 a year earlier.
According to a 2024 report based on a five-year historical analysis, Nigeria’s online loan & credit platforms market is valued at approximately $600 million.
According to the report, recent market estimates indicate that Nigerian digital lending apps issued about 145 million loans worth over $2 billion in a recent year, reflecting the sector’s scale and consumer appetite for digital credit solutions
However, the speed and accessibility of digital loans have also created a crowded and uneven market, where hundreds of platforms compete with different pricing models, especially around one key factor that directly affects borrowers: interest rates.
Based on the list of approved digital lending platforms by the Federal Competition and Consumer Protection Commission (FCCPC), this article ranks apps that offer monthly interest rates below 3%.
Here are 10 loan apps with the lowest interest rates in Q1 2026
10. Renmoney – 2.12% to 2.65% monthly interest rate
9. Nmoney – 2.4% monthly interest rate
8. Singacash – 2.4% monthly interest rate
7. Ease Cash – 2.1% monthly interest rate
6. Letshego – from 2% monthly interest rate
5. Futurecash –1.5% to 2.7% monthly interest rate
4. Flash Loan – 1.8% to 2.7% monthly interest rate
3. Airmoni – 1.5% monthly interest rate
2. True Loan –1.2%–2.7% daily interest rate
1. NiNiMoney – 0.3% monthly interest rate
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