Nigeria’s Crude Oil Production Dips Slightly in January 2024
In January 2024, Nigeria experienced a marginal decline in crude oil production, dropping to 1.42 million barrels per day (bpd), as reported by the Organisation of Petroleum Exporting Countries (OPEC).
According to OPEC’s Monthly Oil Report for February 2024, released on Tuesday, the country’s oil output decreased by 3,000 bpd, or 0.21%, from December’s production of 1.422 million bpd, as per secondary sources.
Although the Federal Government had projected 1.78 million barrels per day in the 2024 budget, the report highlighted that Nigeria’s oil production actually increased from 1.33 million bpd to 1.42 million bpd, based on direct communication data.
President Bola Tinubu, in the 2024 budget proposal, emphasized the nation’s commitment to surpassing its current crude oil production levels.
With crude oil proceeds being a major revenue source for the Nigerian government, the N28.7 trillion budget relies heavily on oil revenues.
OPEC’s report also revealed that crude oil output surged primarily in the United Arab Emirates, Saudi Arabia, and Venezuela, even as total crude production among the 12 OPEC states averaged 26.34 million bpd last month, representing a reduction of 350,000 bpd.
Additionally, the report noted a global decrease in liquids production in January, with preliminary data indicating a drop of 0.6 million bpd to an average of 101.8 million bpd compared to the previous month. Non-OPEC liquids production, including OPEC natural gas liquids, was estimated to have decreased by 0.2 million bpd month-on-month in January, standing at an average of 75.5 million bpd, a year-on-year increase of 1.6 million bpd.
The report attributed the January production decreases mainly to the United States and other Eurasian countries, which were partially offset by rises in China, Canada, and Brazil. The share of OPEC crude oil in total global production in January decreased by 0.2 percentage points to 25.9% compared to the previous month.
Estimates provided in the report are based on preliminary data for non-OPEC supply, OPEC natural gas liquids, and non-conventional oil, while assessments for OPEC crude production rely on secondary sources.
Meanwhile, Nigeria’s crude oil production had risen to 1.418 million bpd in December 2023, as disclosed in OPEC’s Monthly Oil Market Report for January 2024. This represented an increase of 100,000 bpd from November’s production of 1.319 million bpd, according to secondary sources.
