The Federal Government is pushing ahead with plans to expand Nigeria’s oil reserves and crude production while the Central Bank of Nigeria (CBN) maintains a cautious monetary policy stance to keep inflation under control.
At the ongoing Nigeria 2025 Licensing Round in Abuja, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) concluded the commercial bidding process for 37 oil and gas assets, with officials projecting the blocks could add 500 million barrels to Nigeria’s crude reserves and increase production by at least 300,000 barrels per day within the next three years.
According to NUPRC Chief Executive Oritsemeyiwa Eyesan, the new assets are expected to strengthen Nigeria’s current reserves of 37.01 billion barrels of crude oil and condensate and support the Federal Government’s target of producing three million barrels per day by 2030.
The regulator also said the licensing round is expected to generate more government revenue, create jobs, improve foreign exchange earnings and attract fresh investment into the upstream sector.
While the government looks to boost long-term oil output, the CBN has opted to keep borrowing costs unchanged.
Following the 306th Monetary Policy Committee (MPC) meeting in Abuja, CBN Governor Olayemi Cardoso announced that the Monetary Policy Rate (MPR) would remain at 26.5%, the second consecutive meeting in which the benchmark rate has been left unchanged.
The apex bank said the decision reflects growing uncertainty in the global economy despite a slight moderation in Nigeria’s inflation rate. Cardoso pointed to renewed hostilities in the Middle East, warning that higher global energy prices could feed into domestic inflation and increase economic risks.
Economists say the combination of expanding oil production and maintaining a tight monetary policy reflects the government’s dual strategy of attracting investment while attempting to keep inflation and exchange rate pressures under control.
