Nigeria’s Oil Production Falls 2.34% to 1.25mb/d in May 2024

By Adedapo Adesanya

Nigeria’s crude oil production recorded another decline to 1.25 million barrels per day in May 2024, according to the latest data from the Organisation of Petroleum Exporting Countries (OPEC).

This indicates a 2.34 per cent fall from 1.28 million barrels per day recorded in April, raising worries about the nation’s ability to boost its oil earnings amid a worsening economy.

Oil accounts for around 60 per cent of Nigeria’s foreign earnings, which is consolidated by earnings from remittances and exports.

The OPEC monthly oil market report for June explained that production data was based on direct communication with Nigerian authorities. OPEC receives data on crude oil production from two sources: direct communication — which is from member countries; as well as secondary communication, such as energy intelligence platforms.

Further analysis of the report, showed that production was at 1.3 million barrels per day as of the fourth quarter of 2023 and the first quarter of this year.

The production decline comes despite reported improvement in the fight against crude oil theft and pipeline vandalism by the Nigerian National Petroleum Company (NNPC) Limited.

Despite the decline, OPEC said the country retained its status as the largest oil producer in Africa, followed by Libya, which produced 901,000 barrels per day in the month under review.

OPEC said Algeria was the third-largest oil producer with 264,00 barrels per day in May.

On the flip, the OPEC report noted that secondary sources reported Nigeria’s crude production to have increased by five per cent to 1.41 million barrels per day from 1.35 million barrels per day reported in April.

Both figures fell below Nigeria’s 2024 OPEC production quota of 1.5 million barrels per day and further below the 1.78 million barrels expected to fund the 2024 budget.

The OPEC report stated: “According to secondary sources, total OPEC-12 crude oil production averaged 26.63 mb/d in May 2024, 29 mb/d higher Month-on-Month.

“Crude oil output increased mainly in Nigeria, Gabon and Equatorial Guinea, while production in Saudi Arabia, Kuwait, Libya and Congo decreased.

“At the same time, total non-OPEC DoC crude oil production averaged 14.29 mb/d in May 2024, 152 tb/d lower, m-o-m

“Crude oil output increased mainly in Mexico, while production in Russia and Kazakhstan decreased.”