Nigeria’s Oil Production Jumps 14% to 1.35mbpd in September

By Adedapo Adesanya

Nigeria’s crude oil production rose by 14.4 per cent to 1.35 million barrels per day in September 2023, as the country pumped its highest volume of crude oil so far since this year.

This was contained in the latest data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) which showed that the nation’s output in September was 165,429 barrels per day more than 1.18 million barrels per day pumped in August.

Further analysis of the figures obtained from the NUPRC indicated that in January, February and March, the country’s oil outputs were 1,266,659 barrels per day; 1,292,240 barrels per day; and 1,266,737 barrels per day, respectively.

In the months of April, May, June, and July, Nigeria produced 1,004,392 barrels per day; 1,189,332 barrels per day; 1,260,928 barrels per day; and 1,089,089 barrels per day, respectively.

The crude oil production figures, therefore, showed that Nigeria’s oil production in September was the highest output so far recorded by the country this year. This excludes condensates, which are not often calculated.

Despite this relative development, the country’s oil production is still far below the about 1.8 million barrels per day quota approved for Nigeria by the Organisation of Petroleum Exporting Countries (OPEC).

This is caused by large-scale oil theft from pipelines and wells which coupled with underinvestment and pipeline vandalism is affecting the country’s output and exports which is having a ripple effect on Nigeria’s finances.

The triple whammy has affected the contribution of the commodity to the country’s gross domestic product (GDP) which slowed to 2.51 per cent in the second quarter of 2023. According to the National Bureau of Statistics (NBS), the oil sector’s contribution currently stands at 5.23 per cent.

In the second quarter, the oil sector which accounts for the bulk of government revenue and 90 per cent of foreign-exchange reserves, contracted 13.43 per cent. In the same quarter, Nigeria averaged a daily oil output of 1.22 million barrels per day.