Nigeria Retains Position as Africa’s Largest Oil Producer, Crude Production Rises in June

• The Organisation of Petroleum Exporting Countries (OPEC) has put Nigeria’s crude oil production for June at 1.276 bpd
• OPEC’s data shows that Nigeria retained its position as Africa’s largest oil producer in June, followed by Libya
• However, Nigeria’s oil production for June falls short of OPEC’s quota of 1.5 million barrels daily and the 1.75 million barrels budget target

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

Data from the Organisation of Petroleum Exporting Countries (OPEC) has disclosed that Nigeria’s average daily crude oil production increased slightly to 1.276 million barrels daily in June.

The information is based on data from direct communication with Nigerian authorities. This is an increase of just 25,000 barrels daily from the 1.251 barrels per day recorded the previous month.

Read also

“When the time comes”: Nigeria’s crude-backed loans to hit $5.3bn as NNPC clears air

Nigeria remains Africa’s largest oil producer

However, secondary sources put Nigeria’s daily crude oil production in June at 1.362 million barrels, dipping by 10,000 barrels from May’s record of 1.372 million barrels daily.

Despite the drop in production, Nigeria remained Africa’s largest oil-producing country, followed by Libya, which had 1.2 million barrels daily in June.

The development means that Nigeria has continued to fall short of its OPEC oil production quota of 1.5 million barrels daily and its target of 1.78 million per day, as contained in its 2024 budget.

Nigeria targets 2 million barrels daily

The continued failure to meet its daily quota is a challenge to the revenue target of President Bola Tinubu’s government.

According to reports, the Minister of Petroleum Resources (oil), Heineken Lokpobiri, said that Nigeria will target two million barrels daily starting in 2025.

Read also

“Naira will appreciate”: Tinubu scores first as FX reserves exceed $35 billion

Experts believe that insecurity issues and low investment pose challenges to the oil sector and the exit of international oil companies (IOCs).

NNPC seeks oil-backed loan

Reports say that the Nigeria National Petroleum Company Limited (NNPC) is seeking another $2 billion oil-backed loan, which analysts say will affect the country's revenue from oil.

The NNPC reportedly said the money would be used for business activities and exploration.

The Nigerian petroleum industry has faced challenges recently. A report says that the national oil company owes oil marketers about $6 billion in backlog payments, leading to some halting their participation in the industry.

NNPC makes more promises

Legiit.ng earlier reported that the NNPC has unveiled plans to build about 100 Compressed Natural Gas (CNG) and three liquified natural gas (LNG) stations across the country in 12 months.

Mele Kyari, the Group Chief Executive of NNPC, disclosed this at the commissioning of 12 CNG stations built in partnership with NIPCO Gas in Abuja and Lagos and said the drive to bring CNG closer to Nigerians has commenced irreversibly.

Read also

After declaring a state of emergency in oil production, NNPC pledges Nigeria’s crude for $2bn loan

The NNPC boss said in addition to the massive deployment of CNG stations nationwide, the Nigerian oil company and its partners would also establish three LNG stations in Ajaokuta.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng