Nigeria’s Oil Output dropped to 1.32 million barrels per day in February 2024
According to the March 2024 report from the Organization of Petroleum Exporting Countries (OPEC), Nigeria’s oil production decreased to 1.32 million barrels per day (mb/d) in February, down from 1.42 mb/d in January 2024. This represents a decline of 7.4 percent. As a result of this recent decrease, Nigeria’s oil output is now below OPEC’s quota of 1.38 mb/d and well below the 1.78 mb/d projected in the country’s 2024 budget.
It is worth noting that OPEC reduced Nigeria’s production quota from 1.74 mb/d to 1.38 mb/d as part of the bloc’s decision to cut supply. The decline in oil production can be attributed to various challenges facing the country’s oil industry, including insecurity, aging infrastructure, and low investment. In the fourth quarter of 2023, crude oil exports accounted for 81.2 percent of Nigeria’s total exports, highlighting the significant role of oil in the country’s foreign exchange earnings. Any shortfall in production levels would have an impact on foreign reserves.
To increase oil output and attract investment in the sector, it is crucial for Nigeria to revive inactive oil fields and implement enhanced security measures. Furthermore, the full implementation of the Petroleum Industry Act will be critical in attracting investment to replace and repair aging infrastructure, ultimately leading to an increase in crude oil production.
