Nigeria’s crude oil production in the month of July rose to 1.307 million barrels of crude oil daily according to the monthly oil market report of the Organisation of Petroleum Exporting Countries (OPEC).
According to the report, the country added 30 thousand barrels daily to its production when compared to the production figure for last month which stood at 1.276 million barrels daily in June 2024.
The data on Nigeria’s crude oil production provided above is based on direct communication with Nigerian authorities.
According to secondary sources, Nigeria’s daily average crude oil production in June was 1.386 million barrels per day (bpd), marking an increase of 16,000 barrels compared to May’s figure of 1.369 million bpd.
Despite a decline in production reported by secondary sources, Nigeria maintained its position as Africa’s largest oil producer, with Libya following closely, producing 1.175 million bpd in July.
Average crude oil price
According to OPEC data, average crude oil prices rose by 2.5% month-on-month in July to $83.3, driven by strong market fundamentals. However, gains were limited by global macroeconomic uncertainties. Year-on-year, prices increased by 5.4%.
What you should know
The average crude oil production of 1.30 million barrels per day in June highlights that, for the first half of 2024, Nigeria consistently fell short of both its OPEC production quota of 1.5 million barrels daily and its budget target of 1.78 million bpd.
This ongoing shortfall hampers the revenue generation efforts of President Tinubu’s administration. The Minister of Petroleum Resources, Heineken Lokpobiri, previously stated that the country aims to reach a daily production of two million barrels next year, but how this will be achieved remains uncertain as the outlook appears bleak.
The oil sector continues to be troubled by insecurity and low investment, exacerbated by the exit of international oil companies (IOCs) and unresolved issues regarding the approval of oil asset transfers. Earlier this month, the NNPCL declared a renewed effort to tackle the challenges hindering crude oil production, as output has stagnated over the past five months.
In March, President Tinubu signed a raft of fiscal incentives meant to improve the investment climate and position Nigeria as the leading destination for oil and gas investments in Africa- the country has seen a decline in investments in the last decade.
These directives include financial incentives for the development of non-associated gas, midstream operations, and deepwater projects.
Additionally, the initiative aims to streamline the contracting process, reducing the cycle time to six months.