The monthly oil market report of the Organisation of Petroleum Exporting Countries (OPEC) for January 2023 shows that Nigeria’s oil output stood at an average of 1.23 million barrels per day (mb/d) in 2023.
This is an increase of 8.8 percent (0.1 mb/d) from an average of 1.13 mb/d produced in 2022. Decomposed by quarter, the highest output was recorded in Q42023 with an average of 1.31 mb/d, followed by Q12023 which had an average of 1.27 mb/d.
The lowest output was recorded in Q22023 with an average of 1.14 mb/d. The outperformance in the fourth quarter resulted from the launch of the Nembe crude oil grade by the NNPC in November 2023.
Although oil output increased in 2023 relative to 2022, Nigeria’s oil output was below OPEC’s quota of 1.7 mb/d and the 2023 budget target of 1.69 mb/d.
Nigeria’s consistent inability to meet OPEC’s quota in the past decade led to the reduction in the 2024 quota to 1.38 mb/d therefore revealing the urgency of improving oil production in the country.
With global oil demand expected to rise in 2024, Nigeria must endeavour to boost output by resuscitating the inactive oilfields. New security measures should also be implemented to reduce vandalization, illegal activities, and leakages emerging from bunkering to attract investment into the sector and boost production.
cseaafrica.org
