Nigeria’s crude oil production has rebounded sharply, crossing the 1.8 million barrels per day mark in July—its highest in recent months and notably above its OPEC quota of 1.5 million barrels. The Nigerian Upstream Petroleum Regulatory Commission reports that current daily output now averages 1.78 million barrels, indicating a strong turnaround for the oil sector.
This development comes as a welcome relief for the Nigerian economy, which relies heavily on oil for nearly two-thirds of its government revenue and more than 80 percent of its foreign exchange earnings. In recent years, Nigeria’s output had plunged due to rampant crude theft, pipeline vandalism, and security threats across the oil-rich Niger Delta region. The government laments that these challenges, coupled with long-standing underinvestment, forced several major oil companies like Shell, TotalEnergies, and ExxonMobil to exit Nigeria’s onshore operations in 2024.
However, renewed efforts to tighten security and enhance surveillance have started to pay off as the authorities say recent improvements in enforcement have contributed significantly to the production boost.
Looking ahead, the government has set its sights on ramping up production to three million barrels per day as regulatory leaders outlined an ambitious plan to add an additional one million barrels to the current output, pledging sustained collaboration with industry stakeholders to strengthen oversight, seal leakages, and ensure transparency in the upstream oil sector.
