Federal Government unveils 2024 oil licensing plans to boost investment in Nigeria

In a strategic move to enhance investment and draw new stakeholders into the country’s oil sector, the Federal Government has announced its intentions to conduct a fresh round of oil licensing in 2024. The goal is to augment Nigeria’s oil reserves, aiming to reach 40 billion barrels, an increase from the current 37 billion barrels.

Gbenga Komolafe, the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), officially confirmed this development in a policy statement released on Saturday. This initiative aligns with Section 73 of the Petroleum Industry Act (PIA), a comprehensive legislation designed to foster increased investment, restructuring, transparency, and accountability within the oil industry.

Komolafe emphasized that the planned licensing round is a crucial step towards achieving specific objectives, including the generation of funds and the attraction of fresh investments for exploration and development. The strategy is in line with modern acreage licensing practices, ensuring predictability in timelines and aligning with long-term national economic and developmental agendas.

“The Commission shall, beginning in 2024, conduct all future licensing rounds based on a Licensing Round Plan and modern acreage licensing practices, to include the periodicity of licensing based on the predictability of timelines and long-term national economic and developmental agenda,” stated Komolafe.

This announcement not only signifies a proactive approach by the Federal Government to invigorate the oil sector but also sets the stage for potential collaborations and increased investment opportunities, fostering economic growth and development.