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.”
Business
67 States: New Nigeria’s Map with Proposed 31 New States
Nigerians have continued to react to the proposal for the creation of 31 more states in Nigeria received at the House of Representatives
The House of Representatives Committee on Constitutional Review during plenary on Thursday, February 6, disclosed that it has received proposals for the creation of 31 new states
However, Kayode Okikiolu, a veteran journalist, shared how Nigeria’s map would look should the proposal scale through the National Assembly.
Reactions have continued to trail the proposed 31 additional new states at the House of Representatives. This is Kayode Okikiolu, a journalist, who shared a video of how Nigeria’s map would look should the proposal scale through.
The journalist maintained that the proposed new states are proposals and proposals do not become law automatically. He added that there is a tedious process for a proposal to become a law, adding that it would require the approval of two-thirds of the house for it to scale through.
Okikiolu recalled that the last time states were created was in 1996, which was during the regime of the former military head of state, the late General Sani Abacha.
The House of Representatives Committee on Constitutional Review during plenary on Thursday, February 6, disclosed that it has received proposals for the creation of 31 new states in the country.
Benjamin Kalu, the deputy speaker of the chamber, during the plenary session, disclosed the development, while reading the letter of the committee which contained the proposed states.
Nigeria is expected to move from 36 states to 67 if the proposal for the state creation is approved.
However, the proposal has been condemned by Rotimi Sulyman, stating that it was not the next thing for Nigeria as he advocated for true federalism. Rotimi made the comment in an exclusive interview with legit.ng. He said:
“I don’t think the idea serves any productive purpose. To what end would the creation of more 31 states be, when the existing 36 states are mostly not viable and live on handouts from the federal government?
” I think if we are serious, we should be talking of true federalism to the letter, which would entail every part of the country harnessing its resources for economic and national developments.”
Nigerians react as new map emerged
However, Kayode’s tweet has started generating reactions from Nigerians. Below are some of their comments:
Monarch wrote: “The northern states which are all ridiculously large are barely touched. Just want to further breakup the south.”
Chudi Nduka commented: “What would be interesting is a presentation of a proposal to cut down political office holdings, a reduction of 109 senators to 36/37 senators (1 per state). 360 HORep to 109 HOR (3 per state).”
Xplorer reacted: “I think giving power to local government is better than creating another 36 States.”
Olamiposi commended the journalist: “The moment I saw those animals, I knew Kayode would do or say something to make them part of the video. Weldone Baba n’la.
Mr Abu Nana demanded for 776 states: “Personally I prefer 776 states.”

Business
BREAKING: Gunmen Abduct Students, Principal, NECO Officer In Fresh Attack
…One Student Rescued – Police
Gunmen on Tuesday attacked Government Secondary School, Odo-Ekina, in Dekina Local Government Area of Kogi State, abducting four students, the school principal and a National Examinations Council (NECO) ad hoc staff member.
The attack occurred at about 5:25 p.m. while the students were writing their NECO examination. according to the Kogi State Police Command.
Confirming the incident, the State Police spokesperson, ASP Saliu Oyiza Afusat, said one of the abducted students has been rescued, while efforts are ongoing to secure the release of the remaining victims and apprehend the attackers.
She said that the state Commissioner of Police, CP Naziru Bello Kankarofi, alongside the Brigade Commander and the State Security Adviser to the Governor, Commodore Jerry Omodara (Rtd), are already on the way to the scene for an on-the-spot assessment.
The police said a more detailed statement would be issued as additional verified information becomes available.
Source: Vanguard
Business
Dangote Refinery Fixes Petrol Price in New Pricing Template
Dangote Petroleum Refinery has fixed the ex-depot price of Premium Motor Spirit (PMS), also known as petrol, at $0.779 per litre as it officially transitioned to a dollar-denominated pricing system for refined petroleum products.
The new pricing template, which took effect on Monday, July 13, 2026, also pegs Automotive Gas Oil (diesel) at $1.087 per litre and aviation fuel at $0.942 per litre, while coastal deliveries of petrol have been priced at $1,044.62 per metric tonne.
The move effectively ends naira payments for petrol, diesel and aviation fuel purchased from the refinery, marking a significant shift from the naira-based transactions introduced under the Federal Government’s naira-for-crude policy, which commenced on October 1, 2024.
In a notice to petroleum marketers and customers, the refinery said all previously issued naira-denominated Proforma Invoices (PFIs) and Deal Recaps for both gantry and coastal transactions had become invalid.
The notice, signed by the refinery’s Group Commercial Operations, stated: “Following our email of July 9, 2026, regarding the transition from naira to United States dollars (USD), please note that all issued naira coastal and gantry PFIs/Deal Recaps are now invalid, and no payments should be made against them.
“The applicable USD prices for each product, effective today, July 13, 2026, are provided below.”
Under the revised pricing template, petrol sold through the gantry will cost $0.779 per litre, diesel $1.087 per litre, aviation fuel $0.942 per litre, while coastal PMS supplies will sell for $1,044.62 per metric tonne.
The refinery, however, clarified that the transition does not affect Liquefied Petroleum Gas (LPG) transactions.
“Also note that this transition to USD does not apply to LPG transactions,” the notice added.
Industry sources said the change was necessitated by an increasing mismatch between the currency used to purchase crude oil and the currency in which refined products were being sold.
According to one source familiar with the development, Dangote Refinery now receives a significant portion of its crude oil from the Nigerian National Petroleum Company Limited (NNPCL) under dollar-denominated supply arrangements, while a large volume of refined products has continued to be sold domestically in naira.
The source said the imbalance had heightened the refinery’s exposure to foreign exchange risks.
Another industry official explained that the refinery had received fewer crude cargoes under the naira-for-crude arrangement in recent months, making it commercially necessary to align product sales with the currency used for crude procurement.
“Dangote Refinery is receiving fewer naira-denominated crude cargoes from NNPCL than dollar-denominated cargoes, while a larger volume of its petroleum products has been sold in naira.
“The resulting currency mismatch, combined with volatility in international crude oil prices and continued exchange-rate uncertainty, made it necessary to migrate product sales to dollars,” the source said.
The development is expected to have far-reaching implications for petroleum marketers, many of whom source products directly from the refinery for nationwide distribution.
It also raises fresh questions about the future of the Federal Government’s naira-for-crude initiative, which was introduced to strengthen domestic refining, reduce pressure on foreign exchange demand and help stabilise fuel prices.
Although the refinery has fixed a dollar benchmark for product sales, the retail pump price of petrol across the country will continue to depend on several factors, including the prevailing naira-dollar exchange rate, international crude oil prices, transportation and logistics costs, regulatory charges and marketers’ margins.
With Dangote Refinery now accounting for a substantial share of Nigeria’s refined petroleum supply, industry stakeholders are expected to closely monitor how the new pricing regime influences fuel prices and competition in the deregulated downstream petroleum market.
Source: Tribune
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