Nigeria Oil production falls short of the 2024 budget benchmark

In June 2024, Nigeria oil production rose by 25,000 barrels per day (bpd) to reach 1.276 million bpd, as reported by OPEC. This increase came after a decline in May 2024, when Nigeria Oil production dropped by 30,000 bpd to 1.251 million bpd.

Despite these fluctuations, Nigeria Oil production remains below OPEC’s 2024 quota of 1.38 million bpd and the Nigerian government’s 2024 budget benchmark of 1.78 million bpd. This indicates that Nigeria is still falling short of meeting its budgetary targets. Persistent challenges such as crude oil theft, oil bunkering, illegal refining, and operational disruptions are impeding the country’s ability to maximize its oil production capacity.

To overcome these Nigeria Oil production obstacles and ensure sustainable production growth, the government must enforce stringent measures against oil bunkering and production interruptions. Furthermore, promoting private sector involvement in the oil industry, particularly in enhancing oil infrastructure, is crucial for expanding refining capabilities within the country and fostering transparency and efficiency in the sector.

By boosting Nigeria Oil production, the government can enhance its fiscal capacity, enabling investments in infrastructure that can stimulate the development of new industries and reduce future reliance on oil revenues and foreign exchange earnings.