Economy
Nigeria to Demand Higher OPEC+ Output Quota at November Meeting
By Adedapo Adesanya
Nigeria will put forward its demand for a higher oil production quota at the next meeting of the Organisation of Petroleum Exporting Countries and allies (OPEC+) scheduled for November.
This was disclosed by the Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, during an interview with the media team of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), where he reviewed the country’s upstream oil performance four years after the enactment of the Petroleum Industry Act and the establishment of the commission.
He said the country’s current quota, pegged at about 1.5 million barrels per day, no longer reflects its true production capacity, noting that the upcoming OPEC meeting provides an opportunity for Nigeria to make a strong case for an upward review to at least two million barrels per day.
“The OPEC quota is subject to periodic review, and by November, when we attend the annual meeting, we will certainly be making a case for a higher quota for Nigeria. And I believe that there’s no better time than now for us to make a strong case for Nigeria’s quota to be reviewed to two million and above,” the minister said.
He expressed confidence that Nigeria’s improved output levels, strengthened infrastructure, and renewed investments in the upstream sector would support the country’s case for an increase.
Mr Lokpobiri said the sustained recovery in production, improved regulatory environment, and fresh inflow of investment into the oil and gas sector have positioned Nigeria to make a strong case for a higher OPEC quota.
“When I became minister, the OPEC quota for Nigeria was 1.5 million barrels per day because our production then was below that.
“Today, we are producing around 1.7 million barrels daily, including condensates, and we have the capacity to produce above two million barrels per day. It is time to review the quota upward,” he noted.
He explained that Nigeria’s actual output includes condensates, a lighter, higher-value form of crude not covered by OPEC’s production limits, adding that this gives the country flexibility without violating its quota.
“Condensate is not counted in OPEC production, yet it sells at a higher price,” he said. “If we do 1.5 million barrels of crude and one million barrels of condensate, we are still within the rules. And because we have capacity, we are also going to show that we have capacity. Right now, there is something going on to assess our capacity, and that assessment is currently going on. And we believe that we will show the world that we have the capacity to produce more than two million barrels.”
The minister added that verifiable production data, domestic crude supply obligations under the PIA, and evidence of renewed capacity would form part of Nigeria’s case at the OPEC meeting.
Mr Lokpobiri attributed the production rebound to improved security and better pipeline integrity across the Niger Delta.
He said years of pipeline vandalism and oil theft had crippled Nigeria’s production capacity, but recent interventions by security agencies and community partnerships had reversed the trend.
According to him, Nigeria’s rig count, a key indicator of upstream activity, has jumped from about 14 to nearly 50 and is expected to rise further by year-end.
The minister also expressed optimism that the country’s goal of achieving 2.06 million barrels per day by 2025 was within reach, citing improved infrastructure, new investments, and policy stability.
“When I took office, production was around one million barrels a day. Today, it’s between 1.7 and 1.8 million barrels. That’s progress, but we’re not stopping there.
“Our cost of production is higher than the global average, but we’re also bringing it down. The cost of production is bound to be high depending on the circumstances. But today, we have taken steps to ensure that the cost of production is made competitive, and the executive orders have been very helpful in ensuring that we take certain steps that will reduce the cost of per-barrel production.
“Saudi Arabia is getting about eight dollars per barrel. I mean, some of the things that they do there are not available here. Circumstances here are different. But we definitely will get there. The global average is perhaps $12, but ours is way above that. But that doesn’t mean that we are not taking steps. So, having identified the problem, we are taking steps to ensure that we address that problem,” he affirmed.
By Adedapo Adesanya
Oil was down on Tuesday as the market weighed expectations of ample global supply this year against uncertainty around Venezuelan crude output after the US capture of President Nicolas Maduro.
Brent crude futures declined by 69 cents or 1.1 per cent to $61.07 a barrel and the US West Texas Intermediate (WTI) crude tumbled by 79 cents or 1.4 per cent to $57.53 a barrel.
Oil supply will be sufficient in 2026, with or without an increase in production from Venezuela, which is a member of the Organisation of the Petroleum Exporting Countries (OPEC).
US President Donald Trump wants the big American oil firms to return to Venezuela and invest in rebuilding the oil infrastructure in the country holding the world’s biggest proven oil reserves, estimated at about 303 billion barrels.
Venezuela, a founding member of OPEC, has more oil reserves than each of its fellow OPEC members and top exporters in the Gulf, including Saudi Arabia, Iraq, the United Arab Emirates (UAE), and Iran.
With Maduro out, US oil giants are set to invest billions of US Dollars to fix the oil infrastructure and start making money for Venezuela, according to President Trump.
Venezuela’s oil sector has long been in decline, due in part to underinvestment and US sanctions. Oil production from the country averaged 1.1 million barrels per day last year. Exxon, ConocoPhilips, and Chevron are some of the names that could make return to the South American country.
Morgan Stanley analysts said in a note on Tuesday that global oil demand likely grew by around 900,000 barrels per day last year, compared to a historical trend rate of 1.2 million barrels per day.
OPEC supply grew 1.6 million barrels per day and non-OPEC supply grew about 2.4 million barrels per day between the fourth quarters of 2024 and 2025, the Morgan Stanley analysts said.
The bank said oil markets could be in a surplus of as much as 3 million barrels per day in the first half of 2026.
Saudi Arabia has cut the price of its flagship crude grade Arab Light loading for Asia in February, in the third consecutive monthly reduction amid ample supply and weakened Middle Eastern benchmarks.
Saudi Arabia’s decision to cut the prices of all its crude grades follows this weekend’s short OPEC+ meeting, at which the eight producers implementing the cuts reaffirmed they would keep oil production steady through the first quarter of 2026.
By Aduragbemi Omiyale
The chief executive of the Nigerian Exchange (NGX) Group Plc, Mr Temi Popoola, and his counterpart at the NGX Limited, Mr Jude Chiemeka, have expressed delight over the value of the bourse breaking the N100 trillion ceiling on Monday.
Yesterday, the domestic stock exchange gained 1.74 per cent, with the market capitalisation rising by N1.869 trillion to N101.807 trillion ($71.15 billion) from N99.938 trillion ($69.61 billion) and the All-Share Index (ASI) growing by 2,725.86 points to 159,218.22 points from last Friday’s 156,492.36 points.
The growth was buoyed by renewed investor demand and broad-based gains across listed stocks, resulting in a year-to-date returns of 2.32 per cent.
It was observed that the rally was driven by strong buying interest in stocks such as Cadbury Nigeria, Fidson Healthcare, and Champion Breweries, reflecting the traditional “January Effect” that often characterises early-year market activity.
Investor sentiment strengthened markedly, with market breadth improving to 9.13x as 73 equities recorded gains against eight decliners, signalling widespread participation in the rally.
“The equities market capitalisation crossing the N100 trillion mark is a defining milestone for Nigeria’s capital market and a clear signal of renewed investor confidence as the year begins.
“It reflects the market’s growing depth, resilience, and ability to respond positively to improving macroeconomic conditions and structural reforms,” Mr Popoola stated, adding that sustained collaboration between market stakeholders and regulators has played a key role in strengthening market credibility.
“Over the past two years, closer alignment between market operators, policymakers, and the Securities and Exchange Commission (SEC) has enhanced transparency, liquidity, and investor protection, reinforcing the Exchange’s role in mobilising long-term capital for economic growth,” he said.
On his part, Mr Chiemeka said, “The breadth of the market tells a positive story. We are seeing strong participation across banking, industrial, and consumer stocks, alongside rising trading volumes, which suggest growing investor confidence and a more active market at the start of the year.”
By Adedapo Adesanya
The Managing Director of the NASD Over-the-Counter (OTC) Securities Exchange, Mr Eguarekhide Longe, has said the bourse in 2026 would play its role in expanding the economic space and anchoring enduring socio-political transformation and inclusive growth in the country.
Speaking as part of his new year message, the NASD helmsman noted that the steady gains recorded in the nation’s macro-economy will translate to further gains in 2026.
“In this regard, we are optimistic about the further structural reforms and gains that will attend the implementation of the Nation’s new tax law.
“We know that there are development gaps to be covered in improving hard and soft infrastructure, as well as supporting genuine entrepreneurs across the length and breadth of the country, providing justification for scaling up projects and businesses via the instrumentality of structured capital market platforms,” he said.
He also said the flagship OTC market performed moderately with new admissions and a consolidation of the staple performers in the trading year 2025.
“2025 has turned out, in many respects, to be a year of reasonably positive performance, financially, but more a year of tangible results from the diversification of the activities on NASD,” Mr Longe said.
Business Post analysis of the bourse’s 2025 Trading Summary showed that the exchange recorded a strong expansion in market capitalisation in 2025, even as overall trading activity by deal count declined compared with 2024.
Market capitalisation on the exchange more than doubled to N2.12 trillion in 2025, representing a 106 per cent increase from N1.03 trillion in 2024. The number of admitted securities also rose marginally to 47, up from 45 in the prior year, reflecting a 4 per cent growth.
The NASD Securities Index (NSI) rose by 18 per cent to 3,543.74 points, compared with 3,002.68 points in 2024. Similarly, the NASD Pension Index advanced by 21 per cent to 1,032.88 points, up from 954.33 points.
Trading volumes surged significantly during the year. Total volume traded climbed to 14.03 billion units, marking a 377 per cent increase from 2.98 billion units in 2024. However, this sharp rise in volume contrasted with a decline in transaction value, which fell by 43 per cent to N59.29 billion, down from N103.96 billion in 2024.
The total number of deals executed on the platform dropped to 6,456, representing a 26 per cent decline from 8,724 deals recorded the previous year, indicating fewer but larger or more strategic transactions.
The exchange also recorded notable listings in 2025, with Infrastructure Credit Guarantee Company PLC (InfraCredit), Paintcom Investment Nigeria PLC (Paintcom), and MRS PLC admitted to trading. In addition, the listing of the Access Bank PLC Rights Issue contributed to market growth. Combined, new listings on the NASD in 2025 were valued at approximately N1.121 trillion.
Commercial Paper admissions unto the NASD platform exceeded N34.32 billion in the trading year and maiden offer on the NASD Digital Securities platform of a tokenised Commercial Paper stood at N5 billion.
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