Market News

Nigeria, the largest producer of crude oil in Africa, has recorded a drop of 74,000 barrels in the output recorded in February, the Organization of Petroleum Exporting Countries (OPEC) has revealed.

The latest monthly oil market report by OPEC showed that Nigeria’s crude production declined from 1.54 million barrels per day (bpd) in January to 1.47 million bpd in February, according to the cartel’s direct communications data.

This indicates a 4.81 percent decline in the period, a development that put a dent in the Nigerian government’s projected budget of 2.2 million bpd in 2025.

Earlier, Olu Verheijen, Special Adviser on Energy to President Bola Tinubu, stated that Nigeria has established an ambitious target to increase its daily production by approximately three-fifths, aiming to reach 2.7 million barrels of crude oil and condensate by 2027.

However, the upstream oil and gas sector in Nigeria has been persistently hindered by issues such as oil theft and pipeline vandalism. These challenges have undermined the nation’s potential to achieve foreign exchange earnings and meet domestic obligations.

Analysis of the secondary sources showed that crude oil production in the West African country rose to 1.56 million bpd in February from 1.53 million bpd in January, indicating a 1.96 percent increase.

“The oil sector remains central to the economy, reflected in the strong reading of the S&P PMI, which rose further in February to stand at a level of 53.7, compared with 52 in January and 52.7 in December,” OPEC stated.