The anticipated growth in production has been attributed to improved security measures around oil infrastructure. Credit: Lukasz Z/Shutterstock.

Nigeria is set to auction 31 onshore and offshore oil and gas blocks in a bid to bolster oil output and entice new investment.

During an event in Lagos, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) executive commissioner of development and production Enorense Amadasu was quoted by Business Day as saying: “These 31 oil and gas blocs have been carefully selected for their potential to boost our reserves and stimulate economic activities.”

The country’s current oil production, including crude and condensates, has risen to 1.8mbbl/d, an increase from 1.54mbbl/d in September.

The NUPRC aims to further elevate this figure to 2mbbl/d by the end of the year.

The anticipated growth in production has been attributed to improved security measures around oil infrastructure and the introduction of new incentives to attract investors.

However, Nigeria’s increased production trajectory poses a challenge to its OPEC+ production cap, which is set at 1.5mbbl/d of crude.

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Despite the cap, Nigeria’s target includes condensates, which could potentially push its output beyond the agreed limit.

Nigeria has faced challenges in adhering to its OPEC+ quota due to production disruptions caused by underinvestment, theft and vandalism, especially in the Niger Delta region.

To combat these issues, Nigerian President Bola Tinubu’s administration has launched new incentives such as tax breaks for producers and expedited asset sales, aiming to boost both domestic and foreign investment in the energy sector.

These economic reforms are part of a broader strategy to enhance local production capacity and create jobs within the energy industry.

The auction of 31 oil blocks is one of Nigeria’s key steps to drive exploration and ensure long-term production growth.

The NUPRC has stressed that while adhering to OPEC+ guidelines remains important, the commission is equally committed to maximising Nigeria’s energy potential to foster long-term economic development.