ABUJA, Nigeria: Nigeria is preparing to launch its 2026 Upstream Petroleum Licensing Round in the third quarter of the year, a move expected to attract billions of dollars in fresh investment as Africa’s largest oil producer simultaneously accelerates one of its most ambitious domestic gas infrastructure programmes the Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed that the 2026 Licensing Round has received federal government approval and will commence in Q3 2026 after the conclusion of the commercial bid phase of the 2025 Licensing Round, expected in July. The regulator is expected to release details of the oil and gas blocks closer to the official launch.
The forthcoming bid round represents another milestone in the implementation of Nigeria’s Petroleum Industry Act (PIA), signed into law on August 16, 2021, which restructured the country’s petroleum governance framework by establishing the NUPRC as the upstream regulator and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for the gas and downstream sectors.
According to NUPRC, the objective is to attract new upstream capital, improve exploration activity, increase crude oil production, and reinforce investor confidence through a transparent and competitive licensing process.
The announcement follows the successful rollout of the 2025 Licensing Round, launched in December 2025, with the regulator completing the pre-qualification phase in March 2026. Speaking during a meeting with Meren Energy in Abuja on June 3, 2026, NUPRC officials confirmed that preparations for the next licensing cycle were already underway.
Meren Energy’s Group Chief Executive, Oliver Quinn, reaffirmed the company’s commitment to Nigeria, describing it as the firm’s leading investment destination in Africa. The company said it has invested more than US$11 billion in Nigerian upstream assets over the past two decades and intends to evaluate additional opportunities under future licensing rounds.
Industry analysts expect the 2026 Licensing Round to draw strong participation from both international and indigenous energy companies. Among the names widely viewed as potential contenders are Shell, TotalEnergies, Chevron, ExxonMobil, Eni, Seplat Energy, Renaissance Africa Energy, Oando Energy Resources, FIRST Exploration & Petroleum Development Company (FIRST E&P), Aradel Holdings, and Waltersmith Petroleum, reflecting continued confidence in Nigeria’s long-term hydrocarbon potential.
Running parallel to the upstream investment drive is the Nigerian National Petroleum Company (NNPC) Ltd.’s flagship Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline, a strategic 614-kilometre infrastructure project designed to transport up to 2 billion standard cubic feet of natural gas per day from southern gas fields to northern Nigeria. Unlike the upstream licensing programme administered by the NUPRC, the AKK project is intended to expand domestic gas utilisation by supplying natural gas to power plants, fertilizer factories, industrial parks, petrochemical facilities, steel production and manufacturing clusters across Abuja, Kaduna and Kano.
The pipeline forms a cornerstone of Nigeria’s “Decade of Gas” initiative, which seeks to leverage the country’s vast natural gas reserves to diversify the economy, reduce dependence on crude oil exports, improve electricity generation, and stimulate industrial development. The AKK corridor is expected to support new gas-fired power stations and city gas networks in Abuja, Kaduna and Kano, laying the foundation for a gas-powered industrial corridor capable of attracting manufacturing and processing industries to northern Nigeria.
The expansion of gas infrastructure is also expected to trigger a new wave of investment in the country’s midstream sector. Industry observers anticipate growing competition for future gas transportation, distribution and industrial supply opportunities from companies including NNPC Gas Marketing Limited (NGML), Nigerian Gas Infrastructure Company (NGIC), Axxela Limited, Shell Nigeria Gas, NIPCO Gas, and HCGDBL, the gas arm of the SKN Group, which is regarded by market participants as a strong prospective contender for gas infrastructure development and distribution projects along the AKK corridor.
Energy analysts say the convergence of a new upstream licensing round with the expansion of strategic gas infrastructure marks one of Nigeria’s most significant energy investment cycles in years. If successfully executed, the twin initiatives could increase oil production, deepen domestic gas utilisation, strengthen energy security, create thousands of industrial jobs, and reinforce Nigeria’s position as one of Africa’s leading energy investment destinations.
-Samuel Obuda
