Boost for Naira as Nigeria’s Crude Oil Production Rises to 1.7 Million Barrels Per Day

• The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said that Nigeria recorded an improvement in its crude output in November
• The commission disclosed that the country’s crude production hit 1.7 million barrels per day, a yearly increase of 13%
• Analysts have said that the jump signals a good development for the country’s 2025 budget

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

Nigeria’s crude production, including Condensate, rose 13% annually to 1.7 million barrels in November 2024.

The increase significantly improved from the October figure of 1.5 million barrels.

New crude output suitable for 2025 budget

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported on Tuesday, December 10, 2024, that the country’s output was the highest in 2024.

The report showed that Nigeria recorded 1.6 million barrels per day, including Condensate, in January 2024, which declined to N1.5 million barrels before hitting the current figure.

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Analysts have said that the jump signals a good development for the country’s 2025 budget. The Nigerian government pegged next year’s budget at 1.7 million barrels per day at $75 per barrel.

Oil prices fall amid tension in Syria

Meanwhile, oil prices collapsed on Tuesday, December 10, 2024, as concerns about the Middle East tension eased following the overthrow of Syria’s President, Bashar Al-Assad.

Brent Crude dropped by 0.11% to $75.06 per barrel, while US West Texas Intermediate (WTI) crude plummeted by 0.20%, selling at $68.23 per barrel.

Reuters reports that Syria, a non-major oil producer, is strategically positioned with strong links with Russia and Iran and could disrupt the market with regime change.

Experts expect that Nigeria’s oil production can rise further in the coming years due to the conclusion of the asset sale deal between Seplat and Mobil.

Improved oil production will boost naira’s performance

In November 2024, NUPRC approved Seplat Energy's acquisition of ExxonMobil's onshore oil and gas assets in Nigeria.

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The commission said the country’s crude oil production, including Condensate, reached 1.8 million barrels per day in October, exceeding the country’s OPEC-assigned quota. 

Analysts hailed the country’s improvement in crude oil production, saying the development would aid foreign exchange earnings and help stabilise the naira.

Crude oil is a significant forex earner for Nigeria and usually boosts the country’s FX reserves.

NNPC denies disparity in crude oil production figures

Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPC) debunked disparity claims between its crude oil report and the NUPRC.

NNPC's spokesman, Olufemi Soneye, stated that the disparity in figures comes from variations in the reporting periods.

He revealed that the 1.8 million barrels per day figure referenced the peak production achieved in November, while the NUPRC figure showed the average output for the preceding month.

Source: Legit.ng