The Federal Government has announced that Nigeria’s oil production, including condensates, saw a significant increase of 9.9% in November 2024, reaching 1.69 million barrels per day (bpd), up from 1.538 million bpd recorded in October. This marks a steady improvement in the country’s overall production capacity, but still falls short of the target set for 2024.
According to Punch Online, data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reveals that Nigeria’s crude oil production rose by 11.42% in November, reaching 1.48 million bpd compared to 1.33 million bpd in October. This increase demonstrates an upward trend in the country’s ability to produce crude oil, although the figure remains below the production quota set for Nigeria by the Organisation of Petroleum Exporting Countries (OPEC), which continues to impact the country’s production efforts.
Despite this positive growth, condensate oil production, which is exempt from OPEC’s quotas, recorded a marginal decline of 0.01%, decreasing to 204,828 bpd from 204,806 bpd in October. While this decrease is small, it highlights the challenges Nigeria faces in stabilizing all aspects of its oil production.
Although the increase in production is a step forward, Nigeria still faces a shortfall in meeting the 2024 budget benchmark of 1.78 million bpd. This gap continues despite statements by the Nigerian National Petroleum Company Limited (NNPC) claiming that production has risen to 1.8 million bpd. The challenges are ongoing, and the government is working toward enhancing the sector's performance to meet its full potential.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, emphasized that OPEC’s decision to extend Nigeria’s production quota to 1.5 million bpd is in line with the country’s goals and complements the 2025 benchmark of 2.06 million bpd set in the draft appropriation bill. This development provides Nigeria with a target to work toward as the government continues efforts to enhance the sector and raise production levels to the desired targets.
Furthermore, the Port Harcourt refinery, which has a processing capacity of 60,000 bpd, resumed crude oil processing operations on November 26, which is expected to further contribute to improving production output in the coming months. The resumption of these operations aligns with ongoing efforts to enhance Nigeria's refining capabilities and reduce its dependence on imported refined products.
According to OPEC’s latest report, Nigeria remains Africa’s largest oil producer. The report also indicates that Nigeria’s crude oil output in November increased from 1.33 million bpd in October to 1.48 million bpd, surpassing Algeria’s 908,000 bpd and Congo’s 268,000 bpd. Nigeria continues to maintain its position as the continent's leading producer despite challenges in meeting OPEC quotas.
OPEC’s data for November highlights that total crude oil production among OPEC-12 members averaged 26.66 million bpd, which marks a 104,000 bpd increase month-on-month, driven by higher outputs from Libya, Iran, and Nigeria. The rise in output from these countries highlights an overall improvement in production within the OPEC group.
Non-OPEC members, including Kazakhstan and Malaysia, also saw increased production during this period, further boosting global oil supply. This increase is important in understanding the broader market dynamics that Nigeria must navigate to meet both its domestic and international production goals.
The NUPRC reiterated that Nigeria’s total crude oil production, including condensates, rose to 1.69 million bpd in November, up from 1.53 million bpd in October. This growth reflects steady improvements in output, with the government and industry stakeholders continuing to focus on addressing the ongoing challenges within the sector.
