EXPERTS WARN OIL BLOCK AWARDS ALONE CANNOT ACHIEVE 3 MILLION BPD TARGET

Industry stakeholders have warned that awarding new oil blocks alone will not be enough for Nigeria to achieve its target of producing 3 million barrels of crude oil per day (mbpd).

Experts said reaching the production goal will require broader reforms, including increased investment in exploration, improved infrastructure, stronger security around oil assets, and a more stable operating environment for investors.

They noted that while new oil block allocations can attract fresh players into the sector, actual production growth depends on the ability of operators to develop assets, secure funding, and overcome operational challenges.

Oil sector analysts said Nigeria’s crude output has been affected by factors such as pipeline vandalism, oil theft, ageing infrastructure, and regulatory uncertainties. They stressed that addressing these issues would be critical to unlocking the country’s full production potential.

The government has continued to set ambitious oil production targets as part of efforts to increase export earnings, boost foreign exchange inflows, and strengthen public revenue.

Stakeholders urged authorities and industry players to focus on long-term strategies that encourage investment, improve efficiency, and create the conditions needed for sustainable growth in Nigeria’s oil sector.