Nigeria’s daily average oil production witnessed a significant rise of 152,000 barrels per day in November 2024, according to the December Monthly Oil Market Report (MOMR) released by the Organization of the Petroleum Exporting Countries (OPEC). This marked an 11% increase in output, as production, including condensates, climbed from 1.333 million barrels in October to 1.486 million barrels in November.
This remarkable growth reflects a total daily increase of 152,000 barrels per day and an impressive one-million-barrel rise in production over the month, signaling the nation’s capacity to expand its oil output when conditions align.
December Production Insights
However, data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revealed a slight 1.35% decline in daily average oil production in December, dropping to 1.667 million barrels per day from November’s 1.69 million barrels per day. Peak production for December reached 1.79 million barrels per day, while the lowest daily production was 1.57 million barrels.
Despite the marginal decline in daily output, cumulative oil production for December rose to 51.69 million barrels, a 1.9% increase from the 50.71 million barrels produced in November. This growth underlines a positive trajectory, even as the country continues to tackle challenges in meeting its production benchmarks.
Terminal Performance and Contributions
In December 2024, the highest oil output was recorded at the Forcados Terminal, which produced 8.49 million barrels. The Bonny Terminal followed with 7.78 million barrels, while Qua Iboe contributed 4.15 million barrels. Excluding condensates, Nigeria’s daily oil production stood at 1.484 million barrels, indicating a shortfall in meeting OPEC’s 1.5 million-barrel-per-day quota.
Annual Trends and Benchmark Challenges
Throughout 2024, Nigeria’s oil production, including condensates, demonstrated resilience despite falling short of the 1.7 million barrels per day benchmark set in the national budget. Monthly production figures highlight a steady effort to improve:
January: 1.64mbpd, February: 1.53mbpd, March: 1.44mbpd, April: 1.45mbpd, May: 1.47mbpd, June: 1.50mbpd, July: 1.53mbpd, August: 1.57mbpd, September: 1.54mbpd, October: 1.54mbpd, November: 1.69mbpd, December: 1.67mbpd
Why it Matters
Nigeria’s oil production is a critical component of its economy, accounting for a significant portion of government revenue and foreign exchange earnings.
The recent improvements in oil output signal progress in addressing the country’s production challenges, including oil theft, infrastructure issues, and underinvestment. However, there Is need for more improvement. Despite a significant increase Nigeria still falls behind production targets, meeting and exceeding production targets is essential not only for achieving budgetary goals but also for strengthening Nigeria’s fiscal stability and economic resilience.
Additionally, as a key player in the global oil market, Nigeria’s performance impacts global supply dynamics and OPEC’s collective output. By optimizing its oil production capabilities, the nation stands to bolster its economic recovery and improve investor confidence in its energy sector.
Bottom Line
Nigeria is experiencing a significant increase in its oil production output, a much-needed advancement for the nation’s economy. However, this progress represents only the beginning of a broader journey toward economic recovery.
From this point on, the country must address the persistent challenges that hinder its oil sector to sustain and build on these gains.
Tackling issues such as oil theft, outdated infrastructure, corruption, and inadequate investment will be essential to achieving and surpassing production targets. By focusing on these critical areas, Nigeria can unlock the full potential of its oil industry, boosting revenues and supporting long-term economic revival.
