Nigeria has reasserted its dominance in Africa’s oil industry with a notable increase in its daily crude oil production. According to the Organisation of Petroleum Exporting Countries (OPEC), the country’s average daily production rose to 1.28 million barrels per day (bpd) in April 2024. This marks a significant milestone, as Nigeria reclaims the top position as Africa’s largest oil producer.
The data, disclosed by OPEC in its latest monthly oil market report, reveals a 4.07 percent increase from the 1.23 million bpd recorded in March. This growth represents the first month-on-month production increase in 2024, signaling a positive shift in Nigeria’s oil output trends.
OPEC’s production data is sourced through direct communication with Nigerian authorities, ensuring the accuracy of the reported figures. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) corroborated these findings, highlighting a similar rise in production in their April report.
However, there is a disparity in the figures when secondary sources are considered. While OPEC’s direct communication data indicates a production of 1.28 million bpd, secondary sources report a slightly higher output of 1.35 million bpd for April, down from 1.40 million bpd in March. This variance underscores the complexity and challenges in accurately tracking oil production.
Despite the positive trend, Nigeria’s output remains below the benchmark of 1.70 million bpd set in the nation’s 2024 budget. Factors such as pipeline vandalism, oil theft, and illegal refining continue to hamper the country’s ability to reach its full production potential. The budget also pegged the oil price at $77.96 per barrel, making the need for increased and stable production even more critical for economic stability.
The broader OPEC-12 group saw a slight decline in overall production, averaging 26.58 million bpd in April, a decrease of 48,000 bpd from March. While countries like Congo and Iran increased their output, Nigeria, Iraq, and Venezuela experienced declines.
Non-OPEC oil production also saw a month-on-month decrease, averaging 14.44 million bpd in April, with significant reductions in Russia and Kazakhstan, partially offset by increases in Bahrain.
Nigeria’s ability to reclaim its position as Africa’s leading oil producer is underscores the ongoing efforts to mitigate the challenges posed by pipeline vandalism and other illicit activities. The government’s continuous focus on enhancing security and infrastructure in the oil sector is crucial for sustaining and potentially increasing production levels.
