Nigeria’s Oil Production Rises to New High, Exceeds OPEC Quota by 70,000 Barrels Per Day
- Nigeria's crude oil production rose 70,000 barrels per day above its assigned OPEC quota in February 2025
- The development was due to increased domestic demand and use by the mega Dangote Refinery
- Nigeria exceeded its OPEC quota during the period as crude oil prices crashed due to the rise in production
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Findings revealed that Nigeria is producing 70,000 barrels per day above the assigned quota by the Organisation of Petroleum Exporting Countries (OPEC).
A Reuters survey shows that OPEC production increased in February as Iranian exports steadied despite attempts by the US to stop the flow.
Source: Getty Images
OPEC members increase oil production
OPEC countries produced 26.74 million barrels daily in February, 170,000bpd above January’s output, with Iran and Nigeria having the largest gains.
OPEC and its partners are keeping production cuts in place in March due to hopes of limited demand and rising production outside the cartel.
However, on Monday, March 3, 2025, it decided to start raising production from April 7, 2025.
The cartel’s biggest increase of 80,000bpd came from Iran, with 3.30mpd, matching September’s figure, the highest since 2018.
US aims to cut Iran’s production to zero
Iran’s oil exports rebounded during ex-US President Joe Biden’s term, despite US sanctions. However, President Donald Trump is planning to cut them to zero.
The second largest production came from Nigeria, where exports spiked and domestic use rose at the Dangote Refinery.
The West African oil producer is producing 70,000bpd above its OPEC+ quota.
The two biggest producers in OPEC, Saudi Arabia and Iraq, produced lower and higher, respectively.
The survey showed that both countries pumped less than their OPEC+ quota.
Meanwhile, production in the UAE is slightly above its assigned OPEC quota.
Crude oil prices crash
The development came amid a slide in crude oil prices in March, caused by increased production.
Oil prices dropped about two per cent to a 12-week low following reports that OPEC+ will proceed with the planned oil output increase in April.
Brent crude declined $1.19 per barrel or 1.6%, to settle at $71.62 a barrel, while the West Texas Intermediate (WTI) crude dropped $1.39, or two per cent %, to sell at $68.37.
According to reports, the current prices were the lowest sales for Brent since December 6, 2024, and WTI since December 9, 2024.
Oil producers move to increase production
Reuters reported that the OPEC and allies such as Russia, decided to proceed with a planned April increase in oil output.
Other producers such as Nigeria have disclosed that crude oil prices and the exchange rate are key factors in the cost of refined petroleum products.
Recently, Dangote Refinery crashed its ex-depot prices to N825 per litre from N890.
Also, the NNPC responded with a similar price adjustment, sparking a price war among the two biggest players in the downstream petroleum sector.
Nigerians hope for further fuel price crash
Nigerians have expressed mixed reactions regarding the falling prices of crude oil, a major forex and revenue earner for Nigeria.
According to them, the fall is a mixed fortune for the government and Nigerians.
While the fall in oil prices could translate to lower petroleum product prices, it signifies a major drawback for the Nigerian government which benchmarked crude oil prices at $75 per barrel for the 2025 budget.
Source: Getty Images
Legit.ng reported that Bonny Light, Nigeria’s benchmark for the 2025 budget, sold at about $73.53 a barrel on Tuesday, March 4, 2025.
Analysts believe that while the fall in oil prices is a blessing in disguise for petroleum products consumers in Nigeria, it is a major concern for the country, which hinged the 2025 budget on oil prices.
OPEC may reject FG's planned production increases
Legit.ng earlier reported that oil prices dipped on Monday, January 27, 2025, after US President, Donald Trump, asked the global oil cartel, OPEC to scale down prices amid wide-ranging measures to boost US oil and gas production.
Brent Crude fell by 53 cents, or 0.68% to $77.97 per barrel after rising 21 cents on Friday, January 24, 2025.
West Texas Intermediate (WTI) crude sold at $74.16 per barrel, falling 50 cents or 0,67%.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng
Kola Muhammed (Copyeditor) Kola Muhammed is an experienced editor and content strategist who has overseen content and public relations strategies for some of the biggest (media) brands in Sub-Saharan Africa. He has over 5 years of experience in copyediting.
