Nigeria’s Oil Production Dropped by 7.8% & 2.2% in May 2025
According to the monthly report from the Organisation of Petroleum Exporting Countries (OPEC), the global price of crude oil experienced a decline of 7.8% month-on-month in May 2025.
The report indicated that the value of the OPEC Reference Basket (ORB) decreased by $5.36, averaging $63.62 per barrel, down from $68.98 in April 2025. Additionally, Nigeria’s Bonny Light crude saw a reduction of 5.8%, falling from $68.48 per barrel in April 2025 to $64.55 per barrel in May. The decrease in Bonny Light prices may lead to a reduction in oil revenue, thereby limiting the government’s capacity to execute public spending initiatives.
The report further disclosed that Nigeria’s average daily crude oil production (based on direct communication) fell by 2.22% month-on-month, from 1.486 million barrels per day (bpd) to 1.453 million bpd in May 2025. Furthermore, oil production was 3.13% below OPEC’s quota of 1.5 million bpd and significantly 30.8% short of the country’s 2025 target of 2.1 million bpd.
In response to these challenges, the Nigerian government should prioritize increasing oil production by repairing essential infrastructure, improving efficiency, and fostering upstream investments such as exploration and drilling to achieve production goals.
Additionally, given the sector’s volatility, the government ought to enhance efforts to diversify the economy by investing in strategic sectors such as agriculture, manufacturing, and the digital economy to lessen reliance on oil.
