Despite concerted efforts by the Nigerian government to ramp up oil production, the country’s crude oil output, excluding condensate, witnessed a month-on-month decrease of seven percent, dropping to 1.3 million barrels per day in February 2024 from 1.4 million barrels per day in January 2024, as revealed in the March Monthly Oil Market Report (MOMR) by the Organisation of Petroleum Exporting Countries (OPEC).
However, year-on-year statistics show a stable output, with Nigeria maintaining a similar production level of 1.3 million barrels per day compared to the corresponding period in 2023.
Nigeria retains its position as the top oil-producing nation in Africa, with Equatorial Guinea trailing significantly behind at 47,000 barrels per day, according to the OPEC report.
Experts suggest that Nigeria’s total output could exceed 1.6 million barrels per day when factoring in condensate production, which can range between 300,000 and 400,000 barrels per day. Condensate, a light crude similar to Bonny Light, commands high prices in the international market.
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Despite the decline in output, projections for Nigeria’s 2024 budget, based on 1.78 million barrels per day and $78 per barrel, are not expected to be significantly impacted.
In January 2024, Nigeria’s oil output had increased to 1.43 million barrels per day, up from 1.34 million barrels per day in December 2023, representing a 6.9% increase. Year-on-year, there was a notable rise of 15.6% from January 2023, when production stood at 1.23 million barrels per day.
This upward trend in output has been attributed to various factors, including successful efforts to combat oil theft, reinforcing Nigeria’s status as the leading oil producer in Africa, with Equatorial Guinea trailing at 54,000 barrels per day.
