In January 2024, Nigeria experienced a marginal decline in its crude oil production compared to the preceding month, according to the latest report released by the Organization of the Petroleum Exporting Countries (OPEC).
The report indicated that Nigeria’s crude production decreased from 1.422 million barrels per day (mbpd) in December 2023 to 1.419 mbpd in January 2024, a modest reduction of 3,000 barrels per day.
While the primary sources within Nigeria reported an increase in crude oil output from 1.33 mbpd to 1.42 mbpd during the same period, the secondary sources utilized by OPEC recorded a slight decline in production.
Nigeria’s total liquid production, including crude oil and natural gas liquids, experienced this dip in January despite the nation’s efforts to maintain stable production levels.
OPEC’s report highlighted that several factors influenced global oil supply dynamics during the month.
The organization noted production increases primarily in the United Arab Emirates, Saudi Arabia, and Venezuela, while Libya, Kuwait, Iraq, and Algeria experienced decreases in crude oil production.
Nigeria’s current oil output remains below its 2024 budget target of 1.78 mbpd, emphasizing potential challenges in meeting revenue projections dependent on crude sales.
The nation’s oil sector faces ongoing fluctuations influenced by various internal and external factors, including market demands, geopolitical tensions, and regulatory changes.
The Nigerian government, alongside industry stakeholders, continues to monitor production levels closely and strategize to ensure stability and optimize revenue generation from the oil sector amidst evolving global energy landscapes and market dynamics.
