Nigeria has achieved a significant milestone by meeting its Organisation of Petroleum Exporting Countries (OPEC), crude oil production quota for January 2025, recording an output of 1.53 million barrels per day (bpd).
The country for the first time, met the OPEC production quota of 1.5 million bpd since it was set for the 2024 period at OPEC’s ministerial meeting in November 2023.
The increase in production is seen as a positive development for Nigeria’s economy, which heavily relies on oil revenues. The rise to 1.53 million bpd reflects a concerted effort by Nigerian authorities to stabilise and enhance oil output, following previous challenges that had led to lower production levels.
This achievement comes amidst a backdrop of fluctuating oil prices and production cuts agreed upon by OPEC+ members, aimed at balancing the global oil market. The successful compliance with the quota is expected to bolster Nigeria’s economic position and contribute positively to its foreign exchange earnings.
The production figure which was released in OPEC monthly oil market report showed that the increase was against 1.485 million bpd recorded in Dec. 2024, which represented 54,000 bpd change.
In December 2024, the quota was extended to 2026 as Nigeria produced below the quota for over a year.
According to OPEC, the crude oil production data was obtained from two sources – direct communication with Nigerian officials which is from member countries and secondary communication, such as energy intelligence platforms.
The report showed that Nigeria retained its position as the largest oil producer in Africa, surpassing Algeria, which produced 907,000 bpd in January.
The report showed that Congo produced 251,000 bpd in the period under review, making the country the third-largest oil producer in Africa.
According to secondary sources, total OPEC-12 crude oil production, total DoC crude oil production averaged 40.62 mb/d in January 2025, which is 118 tb/d lower, m-o-m.
“Crude oil output increased mainly in Libya, Congo, and Gabon, while production in Nigeria, UAE, and Venezuela decreased significantly.
“Also, total non-OPEC DoC crude oil production averaged 13.94 mb/d in January 2025, three tb/d higher, m-o-m.
“Crude oil output increased mainly in Kazakhstan, while production in Russia decreased,” the report stated.
The OPEC report further stated that Nigeria’s oil production would likely increase with Dangote refinery nearing full capacity.
“The oil sector remains central to the economy, and the Dangote Refinery reaching full production capacity should help stabilise the petroleum product supply and possibly lower petrol prices,” OPEC stated.
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