February 17, (THEWILL) — Foreign oil firms that have secured new petroleum licences in Nigeria have been given a 90-day deadline to establish local operating units, in a move aimed at strengthening regulatory oversight and boosting in-country value creation.
The directive requires successful bidders to incorporate Nigerian subsidiaries before commencing exploration or production activities. Regulators say the measure is designed to ensure proper compliance with local laws, improve transparency, and deepen indigenous participation in the oil and gas sector.
Under the new framework, foreign companies must register their entities with the appropriate corporate authorities, set up operational offices, and demonstrate clear governance structures within the stipulated time frame. Failure to comply could result in penalties, including possible revocation of awarded licenses.
Industry analysts note that the policy aligns with broader reforms intended to reposition Nigeria’s petroleum industry as more competitive and investor-friendly, while simultaneously promoting local content development. By mandating domestic incorporation, authorities aim to enhance accountability, create jobs, and ensure that a greater share of economic benefits remains within the country.
The development comes amid ongoing efforts to attract fresh investment into upstream exploration, particularly as global energy markets remain volatile and competition for capital intensifies.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
