In a remarkable turn of events, Nigeria witnessed a substantial surge in crude oil output, marking a 7.7% increase in December 2023, as reported by the Organisation of Petroleum Exporting Countries (OPEC) Monthly Oil Market Reports (MOMR) released on January 18, 2024.
The nation’s oil production soared to 1.4 million barrels per day (mbpd) in December, reflecting a notable 100,000 bpd upturn from the previous month, bringing Nigeria closer to achieving its 2024 budget oil production benchmark of 1.78 mbpd.
OPEC+ confirmed Nigeria’s status as the leading African oil-producing and exporting nation, emphasizing that sustained growth is a positive outcome of the Federal Government’s dedicated efforts against challenges such as vandalism, oil theft, and malfeasance.
Recent successful initiatives, including the discovery and destruction of 52 illegal refineries, removal of 32 illegal connections in the Niger Delta, and uncovering of seven illegal storage sites in Akwa Ibom State, contribute to this positive trajectory.
With crude oil prices closing at $78.85 per barrel and projections indicating an average of $82 per barrel for Brent crude oil in 2024, experts anticipate favorable revenue conditions for Nigeria, potentially surpassing the 2024 budget benchmark of $77.96 per barrel. However, achieving this hinges on maintaining stability and volume in production output while meeting OPEC quotas.
Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), expressed confidence in reaching the 1.78 mbpd target, stating, “The early signs of improved oil production output give us confidence that the 2024 crude oil production benchmark is achievable.”
Dr. Muda Yusuf, Managing Director of the Centre for the Promotion of Private Enterprise, praised the positive impact of high oil prices on investments, foreseeing a continued upward trend in oil prices deep into 2024.
He emphasized the administration’s unwavering commitment to combating crude oil theft, expecting the momentum to be sustained, with a significantly impressive impact on the outlook.
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