The Nigerian government has announced the commencement of the 2024 oil bid rounds in line with the provisions of the Petroleum Industry Act (PIA). This announcement was made during the first edition of the NEITI House Dialogue organized by the Nigerian Extractive Industries Transparency Initiative (NEITI) in Abuja. The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) disclosed that it generated N4.34 trillion in revenue in 2023.
Gbenga Komolafe, the Chief Executive of NUPRC, outlined that the oil licensing rounds aim to improve data quality and will be conducted transparently and competitively, adhering to the guidelines set by the PIA. He confirmed that the 2024 licensing round will commence by the end of the month, with a focus on offshore assets. Komolafe emphasized transparency and stated that clear criteria have been established to guide the process.
Regarding revenue projections from the bid rounds, Komolafe noted that estimating the exact amount is challenging due to the predominantly greenfield nature of the assets being offered. However, he anticipated that the nation would earn billions of dollars from royalties, taxes, and other levies generated through the bid round.
Komolafe revealed that 12 blocks are currently on offer for the 2024 bid process, with plans to complete the bid rounds for a total of 17 blocks by early next year. Additionally, the commission is reviewing dormant oil blocks awarded in previous bid rounds and will revoke awards for underperforming assets. These assets will undergo a competitive bidding process in accordance with the PIA’s provisions, which mandate fair, competitive, and transparent asset allocation.
The NUPRC has demonstrated consistent revenue growth, with revenues increasing from N2 trillion in 2020 to N4.34 trillion in 2024. Komolafe attributed this growth to the commission’s transparent approach to revenue reporting and its ability to meet and surpass revenue targets.
Ogbonnaya Orji, Executive Secretary of NEITI, highlighted the significance of the NEITI House Dialogue as a platform for engaging stakeholders in the extractive industries. The dialogue aims to address industry-related issues and provide updates on the implementation of NEITI report recommendations, fostering transparency and inclusivity in sector oversight and reforms.
