Nigeria’s Oil Production Rises to 1.3 Million B/D in July
Nigeria’s oil production saw a boost in July 2024, increasing by 30,000 barrels per day (bpd) from 1.27 million bpd to 1.30 million bpd, according to the Organization of Petroleum Exporting Countries (OPEC) August Monthly Oil Market Report. This increase solidifies Nigeria’s position as Africa’s largest oil producer, bringing the nation closer to OPEC’s 2024 production quota of 1.38 million bpd, although still below the Federal Government’s 2024 budgeted benchmark of 1.78 million bpd.
The report also highlighted a rise in crude oil prices by $1.21 to $84.43 per barrel in July, indicating positive prospects for Nigeria’s foreign reserves and revenue. These increases are expected to boost oil exports, thereby enhancing foreign exchange inflows and strengthening the nation’s foreign reserves.
Despite these gains, Nigeria’s oil sector continues to face significant challenges, including oil bunkering, illicit refining, crude oil theft, and other production-related issues, which have led to production levels falling below both budgeted and OPEC benchmarks.
With OPEC raising Nigeria’s crude oil production quota to 1.5 million bpd for 2025, the government must intensify efforts to address these challenges. Implementing stricter security measures and enhancing surveillance around oil facilities will be crucial. This could involve investing in advanced technology for monitoring and tracking oil production to reduce losses and improve overall efficiency.
