Nigeria’s Oil Output Rises Slightly to 1.3mbpd in July, OPEC Reports

Nigeria’s crude oil production saw a modest increase in July 2024, according to the latest data released by the Organisation of the Petroleum Exporting Countries (OPEC).

The report indicates that the country’s average daily output rose to 1.307 million barrels per day (mbpd), marking a slight improvement from the 1.27 mbpd recorded in June.

This increment comes amid ongoing claims by top Nigerian officials, including President Bola Tinubu and the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, who had earlier asserted that the nation’s oil production had surged to 1.6 mbpd.

However, OPEC’s figures present a different narrative, showing a more conservative estimate of Nigeria’s oil production capabilities.

In his August 4 nationwide broadcast, President Tinubu highlighted the supposed increase in oil production as a significant achievement of the reforms his administration has implemented since taking office in May 2023.

He credited these reforms, which include measures aimed at addressing gaps in the Petroleum Industry Act, for what he described as a “resurgence” in the nation’s oil and gas sector.

“Our once-declining oil and gas industry is experiencing a resurgence on the back of the reforms I announced in May 2024 to address the gaps in the Petroleum Industry Act,” Tinubu stated. “Last month, we increased our oil production to 1.61 million barrels per day, and our gas assets are receiving the attention they deserve.”

Similarly, NUPRC’s Komolafe had, in a public statement on July 26, also cited a daily production figure of 1.61 mbpd as of July 23, 2024.

These assertions have raised questions, particularly in light of OPEC’s more conservative data.

OPEC’s Monthly Oil Market Report for August 2024 highlights that Nigeria added an average of 30,000 barrels per day to its production, elevating the output from 1.27 mbpd in June to 1.307 mbpd in July.

The report, based on direct communication with Nigerian authorities, also estimates Nigeria’s daily crude production at 1.38 mbpd in July, as per secondary sources.

The discrepancy between the Nigerian government’s reported figures and those provided by OPEC has sparked debate over the accuracy of the official data.

Critics argue that the gap underscores the challenges Nigeria faces in accurately reporting and managing its oil production, a critical component of its economy.

Despite the slight increase in production, Nigeria’s oil industry continues to grapple with various challenges, including oil theft, pipeline vandalism, and fluctuating global oil prices.

These issues have impeded the country’s ability to reach its full production potential, even as the government expresses optimism about achieving higher output levels.

Speaking recently at a meeting with maritime stakeholders, Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC), Mele Kyari, reiterated the government’s commitment to increasing oil production to two million barrels per day by the end of the year.

He said continued collaboration with security agencies to combat oil theft and pipeline sabotage is important.

“The target is to increase production to two million barrels by the end of the year, and we are fully committed to doing that,” Kyari said. “I appreciate the support of the Nigerian Navy in making this possible. Pipeline vandalism has also decreased significantly, and there is a lot currently happening in the industry.”

As Nigeria continues its efforts to boost oil production, the discrepancies in reporting highlight the need for greater transparency and accuracy in the country’s energy sector.

The government’s ambitious targets will require not only effective reforms but also reliable data to ensure that progress is accurately measured and reported.