Nigeria’s Oil Production rises to 1.3 million barrels per day

The August Monthly Oil Market Report published by the Organization of Petroleum Exporting Countries (OPEC) indicates that Nigeria’s oil production rose by 30,000 barrels per day (bpd) in July 2024, increasing from 1.27 million bpd to 1.30 million bpd.

This positions Nigeria as the leading oil producer in Africa and moves the nation closer to OPEC’s production target of 1.38 million bpd for 2024, although it remains significantly below the Federal Government’s budgeted benchmark of 1.78 million bpd for the same year. The report further highlights a rise in crude oil prices, which increased by $1.21 to reach $84.43 per barrel in July, indicating a robust potential for enhancing the country’s foreign reserves and revenue.

These increases are expected to positively impact the Nigerian economy by boosting oil exports, thereby increasing foreign exchange inflows and fortifying the nation’s foreign reserves. Nevertheless, the oil sector continues to face significant challenges, including oil bunkering, illegal refining, crude oil theft, and other production-related issues, which have led to production levels falling short of both budgetary and OPEC targets.

With OPEC planning to raise Nigeria’s crude oil production quota to 1.5 million bpd by 2025, it is imperative for the government to intensify efforts to tackle these challenges and fully leverage its oil production capabilities. Additionally, the government should consider implementing more stringent security measures and enhancing surveillance around oil facilities, potentially through investments in advanced monitoring technologies to mitigate losses and improve overall operational efficiency.