Nigeria’s Oil Output Surpasses OPEC Quota, Signals Economic Boost

Nigeria’s oil production soared beyond 1.8 million barrels per day (bpd) in July, exceeding its OPEC quota of 1.5 million bpd. For the first time in months, output averaged 1.78 million bpd, Gbenga Komolafe, head of the Nigerian Upstream Petroleum Regulatory Commission, announced at an energy conference.

This milestone, last achieved in November, marks a significant recovery for Africa’s largest oil producer. Consequently, the surge strengthens Nigeria’s economy, which relies on oil for nearly two-thirds of government revenue and over 80% of foreign exchange earnings.

Despite this progress, challenges like crude theft, pipeline sabotage, and insecurity in the Niger Delta have long hampered production. Underinvestment also drove major oil firms, such as Shell and ExxonMobil, to exit Nigeria’s onshore fields in 2024.

However, intensified security operations have curbed these issues, boosting output. As a result, Komolafe outlined plans to reach 3 million bpd, aiming to add 1 million bpd to current levels.

Furthermore, Bayo Ojulari, NNPC Limited’s group chief executive, expressed optimism about hitting 1.9 million bpd by December. He also set a medium-term goal of 2.06 million bpd by 2027. Enhanced surveillance and enforcement, coupled with stakeholder collaboration, are driving these gains. Therefore, Nigeria’s upstream sector is focusing on transparency and sustained growth to stabilize the economy.