Nigeria’s crude oil production suffered a significant setback in August, falling below its OPEC quota after successfully meeting targets for two consecutive months.
According to data from the Organisation of the Petroleum Exporting Countries (OPEC), Nigeria pumped an average of 1.434 million barrels per day (bpd), representing a sharp decline from July’s 1.507 million bpd output.
This production figure marks the lowest level recorded in six months for 2025, falling short of Nigeria’s allocated OPEC quota of approximately 1.5 million bpd.
The decline is particularly concerning given that Nigeria had shown promising signs of recovery in June and July, when production levels moved closer to agreed targets.
The shortfall in crude output can be attributed to persistent operational difficulties, including crude oil theft, pipeline vandalism, and technical problems at key oil terminals.
These challenges have historically plagued Nigeria’s oil sector, undermining the country’s position as Africa’s top crude producer.
The production decline threatens to impact Nigeria’s revenue projections significantly, as the federal government relies heavily on oil earnings to fund its 2025 budget.
Crude oil exports constitute more than 80 percent of Nigeria’s foreign exchange revenues, making sustained production levels critical for economic stability.
The Nigerian National Petroleum Company Limited (NNPC) has announced plans to increase crude output to at least 1.7 million bpd by year-end through enhanced security measures in the Niger Delta region.
The state oil company also promises renewed investment in upstream projects to address infrastructure challenges.