OPEC Says Nigeria’s Crude Production Hits 4-Year High as FG Explains Actual Figure
- Nigeria’s crude oil production has broken a four-year record with significant improvements.
- The Organisation of Petroleum Exporting Countries (OPEC) said Nigeria has surpassed its crude oil quota for December 2024
- OPEC said Nigeria met a significant oil production milestone of 1.5 million barrels per day in December 2024
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Nigeria’s oil production has exceeded 1.5 million barrels per day for the first time since 2021.
The figure surpasses its December 2024 quota set by the Organisation of Petroleum Export Countries (OPEC).
Source: Getty Images
Nigeria’s crude production surpasses OPEC quota
This development shows Nigeria’s resurgence in crude production, which is critical for its economy and heavily dependent on oil revenues.
The global oil cartel previously set Nigeria’s production quota at 1.5 million barrels per day, which has now been fully met.
Bloomberg's tanker tracking data shows that Nigeria’s output increased by 40,000 barrels per day to reach 1.51mbpd, its highest production in four years.
Nigeria’s crude production hits 1.8mbpd
Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources, stressed the oil industry's essential achievements under President Bola Tinubu.
Lokpobiri said that crude oil production has increased significantly from one million barrels daily in 2023 to 1.8 million.
The minister reiterated his achievements on X, explaining that Tinubu issued a directive to enhance the nation’s crude production.
He said he leveraged the President’s order to carry out critical reforms in the oil sector.
Nigeria closed 2024 with a significant improvement in oil production, exceeding OPEC’s quota after several challenges in 2023.
However, analysts say that despite the achievement, the country’s oil production did not meet the 2024 budget projection, with a shortfall of 500,000 barrels.
The gap led to the country intensifying efforts to diversify revenue, depending more on taxes and Customs levies to meet budget shortfalls.
NNPC reveals reason for increased production
According to reports, in August 2023, OPEC retained Nigeria’s oil production quota at 1.5 million barrels per day.
The country reported further progress in October 2024, when the Nigerian National Petroleum Company Limited (NNPC) revealed that it achieved 1.8 million barrels per day.
The NNPC attributed the feat to enhanced security measures to curb oil theft and pipeline vandalism.
The state oil firm did not specify if the 1.8 million barrels per day were solely crude oil or included blended and unblended condensates.
Other OPEC members fall short
As oil production surged in Nigeria in December 2024, other OPEC members recorded shortfalls due to the UAE's strategic reductions to stabilise global oil prices.
UAE reduced its oil exports to an 18-month low, with the country’s oil company cutting down oil cargo allocations for some Asian countries in January and February last year.
Bloomberg reported that Iran’s oil production dipped by 40,000 barrels per day to 3.32 million in December last year.
Dangote refinery consumes 13% of Nigeria’s crude export
Legit.ng earlier reported that the Dangote Refinery retained 13% of Nigeria’s crude oil exports and domestic supply in 2024.
A new report disclosed that the development increased Nigeria’s domestic share of oil exports by 2% in 2023 and marginally cut its European exports.
Despite being a significant oil producer and net exporter, Nigeria imported 47,000 barrels daily of US oil in 2024, which experts describe as unusual for an oil-producing country.
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Source: Legit.ng
