By Danjuma Amodu | March 13, 2026
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that companies holding prospecting licences without developing their assets will no longer be tolerated. NUPRC Chief Executive, Mrs. Oritsemeyiwa Eyesan, stated that Section 94 of the Petroleum Industry Act requires operators to either commence work or relinquish the licence, a provision known as “drill or drop”.
Eyesan made this statement when she received the management of the Petroleum Directorate of Sierra Leone at the Commission’s headquarters in Abuja. She revealed that enforcing this provision has attracted more serious investors in the ongoing 2025 licensing rounds, which will increase Nigeria’s petroleum reserves.
The Director-General of the Petroleum Directorate of Sierra Leone, Mr. Foday Mansaray, expressed interest in understanding Nigeria’s petroleum sector to improve his country’s hydrocarbon sector. He called for stronger and more sustainable energy collaboration between Sierra Leone and Nigeria.
Eyesan’s statement marks a significant shift in Nigeria’s approach to oil exploration, aiming to boost investment and production in the sector.
The NUPRC has reduced the signature bonus for the 2025 petroleum licensing round to between $3 million and $7 million, aiming to attract $10 billion in new investments.
