According to the latest data from OPEC’s monthly oil market report (MOMR), Nigeria’s crude oil production for February decreased to 1.32 million barrels per day from the previous month’s production of 1.42 million barrels per day, marking a drop of 104,000 barrels per day.
The figures reported for the month were based on direct communication from Nigeria to OPEC authorities
However, secondary sources indicated a slight increase in daily crude oil production to 1.47 million barrels, representing a rise of 47,000 barrels per day
Africa’s Leading Producer
Despite the decline, Nigeria maintained its position as Africa’s largest oil producer among the continental members of OPEC.
In comparison, Libya produced 1.17 million barrels per day, followed by Algeria with 906,000 barrels daily.
Global Oil Production Insights
OPEC’s report forecasts a growth in global oil production from non-OPEC producers by 1.1 million barrels daily in 2024. Meanwhile, OPEC countries are expected to see a modest increase of 64,000 barrels daily, averaging around 5.5 million barrels per day for the year.
In February, OPEC countries collectively increased production by 203,000 barrels daily, reaching approximately 26.5 million barrels daily, as per secondary sources.
Saudi Arabia’s Production and Global Prices
Despite commitments to production cuts, Saudi Arabia increased its oil production by around 55,000 barrels daily, maintaining its position as the largest oil producer globally at 9.01 million barrels daily.
In terms of prices, OPEC’s reference basket rose by $1.19 to an average of $81.23 per barrel, while Brent crude and NYMEX WTI futures contracts also witnessed increases.
Impact on Nigeria’s Economy
Nigeria’s failure to meet its crude oil production benchmark for the second consecutive month poses challenges for revenue generation and the country’s adherence to OPEC quotas.
This situation hampers efforts to execute the 2024 budget and impacts the Central Bank of Nigeria’s ability to enhance FX liquidity, affecting the value of the naira.
Government Initiatives
In response to these challenges, President Tinubu recently signed executive orders aimed at attracting investors to the Nigerian oil industry.
These include reducing contract cycles and providing financial incentives for deepwater investments.
Source: Allnews.ng