President Bola Tinubu’s recent remark regarding Nigeria’s oil production levels has been called into question by the Organization of the Petroleum Exporting Countries (OPEC), sparking a dispute in the energy sector.... CLICK TO READ THE FULL NEWS HERE▶▶
Recall that following years of setbacks, President Tinubu said on August 4, 2024, that Nigeria’s oil output had increased to 1.6 million barrels per day (bpd), indicating a major recovery in the industry.
“Our once declining oil and gas sector is experiencing a resurgence on the back of reforms. Last month, we increased our oil production to 1.6 million barrels per day and our gas assets are receiving the much-needed attention.”
The administration hailed this assertion as a significant accomplishment, emphasizing a favourable turnabout for Nigeria’s economy, which is primarily dependent on oil exports.
What OPEC data says
But the most recent information obtained from OPEC paints a different picture, indicating that the country’s true supply might be far less. In June 2024, Nigeria reportedly pumped 1.276 million barrels per day.
In July 2024, the output barely climbed to 1.3 million barrels per day.
Direct contact with Nigerian authorities served as the basis for the crude oil output statistics on Nigeria that was previously supplied.
Secondary sources report that Nigeria produced 1.386 million barrels of crude oil on average per day (bpd) in June, up 16,000 barrels from 1.369 million barrels per day (bpd) in May.
Bala Zakka, an oil and gas analyst said, “Nigeria is not doing well. We have an internal issue affecting the sector.”
Zakka claims that despite what the evidence from OPEC has demonstrated, political assertions are not facts.
“We play politics with our resources a lot. We have observers who follow these things and make investments based on data.
“Nigeria needs to start working on making the business environment better, implement working policies and be factual with the state of affairs of the country’s most important sector.”
Even though secondary sources reported a decline in production, Nigeria remains Africa’s largest oil producer, with Libya coming in second with 1.175 million barrels per day in July.
This ongoing deficit is impeding President Tinubu’s administration’s efforts to raise money.
According to Heineken Lokpobiri, the minister of petroleum resources, the country hopes to produce two million barrels per day by the end of the year, but it’s unclear how this would be done given the grim outlook.
Nigeria regains top position
Legit.ng reported that Nigeria produced 236,229,281 barrels of crude oil in the first half of 2024.
Data from the Nigerian Upstream Petroleum Regulatory Commission confirmed that 44.2 million barrels of crude were produced in January and 38.3 million barrels in February.
The Punch reported that 38.1 million barrels were produced in March and 38.4 million barrels were produced each month in April.
