Nigeria is pushing ahead with a new oil licensing round aimed at boosting upstream investment, as strong crude and refined petroleum flows continue to anchor £8.1 billion ($10.3 billion) in annual trade with the United Kingdom.
The twin developments underscore the central role of hydrocarbons in shaping both Nigeria’s external trade profile and its long-term production outlook, even as policymakers seek to attract fresh capital into the energy sector.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it has completed the pre-qualification stage of the country’s 2025 oil and gas licensing round, shortlisting firms for the next phase of competitive bidding.
In a statement issued on March 17, 2026, the regulator confirmed that successful applicants were notified following the screening exercise conducted on March 16, in line with the licensing guidelines approved for the round.
“With the pre-qualification stage successfully completed, the Commission will permit successful applicants to lease subsurface data and prepare for technical submissions,” the agency said.
The licensing round, approved by President Bola Ahmed Tinubu in December 2025, is offering 50 oil and gas blocks across key sedimentary basins, including the Niger Delta, Anambra, Bida, Benue Trough and Chad basins. The initiative is designed to stimulate exploration activity, expand reserves and support long-term crude production growth.
The move comes as Nigeria’s oil sector remains a key driver of international trade, particularly with long-standing partners such as the United Kingdom.
According to the latest trade and investment factsheet published by the UK Department for Business and Trade, total bilateral trade between the UK and Nigeria reached £8.1 billion in the four quarters to the third quarter of 2025, marking an 11.4% increase from the previous year.
The data highlights a trade relationship still heavily dependent on energy flows. Refined oil products accounted for £1.6 billion, or nearly 70% of UK goods exports to Nigeria, while crude oil remained Nigeria’s dominant export to the UK, valued at £1.0 billion and representing over 60% of UK imports from the country.
Beyond hydrocarbons, trade also includes gas, mechanical power generators and consumer goods such as cleaning products, though these remain secondary to petroleum.
The UK maintained a trade surplus of £3.4 billion with Nigeria, supported largely by strong services exports. Services accounted for £3.5 billion, or more than 60% of total UK exports to Nigeria, reflecting the dominance of British firms in sectors such as finance, consulting and professional services.
The UK’s overall market share in Nigeria rose to 11.1% in 2024, underpinned by a 23.8% share of the services segment, according to the report.
Geographically, London and the South East continue to dominate trade flows, accounting for the bulk of goods exports and imports. Around 3,300 UK VAT-registered businesses are currently engaged in exporting to Nigeria, highlighting the breadth of commercial ties between both economies.
Investment links, while more modest, remain steady. Nigerian foreign direct investment stock in the UK stood at £492 million at the end of 2024. Data on UK investment in Nigeria was not disclosed, though analysts say energy remains a key channel for capital flows.
The alignment between Nigeria’s upstream expansion efforts and its export-driven trade profile suggests that future trade performance will depend heavily on the success of initiatives such as the ongoing licensing round.
By opening new acreage to investors, authorities are seeking to reverse years of underinvestment and production volatility, while positioning the country to capture sustained demand for crude in global markets.
Economic forecasts remain cautiously optimistic. The International Monetary Fund projects Nigeria’s real GDP growth will accelerate to 4.2% by 2026, a trajectory that could support increased energy output and broader trade expansion.
For policymakers, the challenge lies in translating upstream investment into stable production gains and, ultimately, into diversified economic growth. For now, oil continues to define both Nigeria’s trade relationships and its investment agenda.