Nigeria, Africa’s top oil producer, has surpassed the 1.5 million barrels per day (bpd) milestone in crude oil output, exceeding its December 2024 quota set by the Organization of Petroleum Exporting Countries (OPEC).
Tanker tracking data from Bloomberg indicates that Nigeria’s production rose by 40,000 bpd, reaching 1.51 million bpd, marking the highest output in four years. Despite production challenges in 2023, when the country capped output at 1.3 million bpd, Nigeria ended the year with a significant improvement, surpassing OPEC’s target.
However, Nigeria’s production still lagged behind its 2024 budget forecast by 500,000 bpd, prompting the government to focus on diversifying its revenue streams, particularly through taxes and customs duties, to address the shortfall.
In August 2023, OPEC maintained Nigeria’s production quota at 1.5 million bpd as part of efforts to stabilize global oil prices. By October, the Nigerian National Petroleum Company (NNPC) reported reaching 1.8 million bpd, a milestone attributed to enhanced security measures aimed at reducing oil theft and pipeline vandalism. However, NNPC did not clarify whether the 1.8 million bpd figure included condensates, which are excluded from international sales.
Despite Nigeria’s production boost, OPEC members’ overall output declined due to strategic cuts by the United Arab Emirates (UAE) to stabilize global oil prices. UAE’s oil exports dropped to an 18-month low, and state-owned ADNOC reduced crude oil allocations to select Asian customers in January and February.
Meanwhile, Iran’s oil production dropped by 40,000 bpd to 3.32 million bpd in December, although it remains near a six-year high. Libya, recovering from political instability, raised its production by 40,000 bpd to 1.23 million bpd, marking its highest output in over a decade.
Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources, celebrated the achievements of President Bola Tinubu’s administration. He noted that crude oil production had increased from 1 million bpd to 1.8 million bpd, including condensates. Lokpobiri credited President Tinubu with issuing directives to boost production and fostering peace in Niger Delta oil-producing regions, which led to foreign investments.
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