OPEC Reveals That Nigeria Oil Output Has Reached 1.4 Million Barrels per Day

The Organisation of Petroleum Exporting Countries (OPEC), on January 18, 2024, released its Monthly Oil Market Reports (MOMR), revealing that Nigeria has experienced an increase in its crude oil output, which says that it increased by 7.7% in December 2023.

The country's oil output reached 1.4 million barrels per day (mbpd) in December, which shows 100,000 barrels per day last year.

This rise in oil output brings Nigeria closer to meeting its 2024 budget oil production benchmark of 1.78 mbpd.

OPEC+ provided the data based on information from secondary sources, confirming that Nigeria remains the biggest oil-producing and exporting nation in Africa.

However, stakeholders have said that the increase in oil production reveals the FG's efforts to address the key challenges that affect Nigeria's oil sector, such as oil theft, vandalism, and malfeasance.

A recent action by the government is a testament to their efforts. A total of 53 illegal refineries were found in different states of the federation, which have been destroyed; the removal of 32 illegal connections in the Niger Delta and uncovering of seven illegal storage sites in Akwa Ibom State contributed to this recovery.

With a barrel of crude oil at $78.85 per barrel and other projections showing it will climb to $82 per barrel for Brent crude oil in 2024, experts say it will benefit the nation's economy.

Before this can be achieved, Nigeria needs to sustain its stability and volume in production output while meeting OPEC quotas.

Speaking with confidence on what output Nigeria believes in putting out by the end of the year, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, says that he believes in the 1.78 mbpd target.

He stated, 

• The early signs of improved oil production output assure us that the 2024 crude oil production benchmark is achievable.

The Managing Director of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, applauded the increase in oil output as he said,

• The uptrend in oil prices will continue deep into 2024 as the geo-political factors driving the price have not decreased. The present administration has been unwavering in its commitment to tackling crude oil theft. We expect the momentum to be sustained in 2024, and the impact on the outlook will be significantly impressive.