Lagos — The Organization of Petroleum Exporting Countries (OPEC) April Monthly Oil Market Report reveals that Nigeria’s average daily crude oil production (based on direct communication) declined by 4.37% (64,000 bpd), from 1.465 million bpd recorded in the preceding month to 1.401 million bpd in March.
The report also shows that oil production fell by 6.6% below OPEC’s 1.5 million bpd quota and a staggering 32% short of the country’s 2025 target of 2.06 million bpd.
Persistent shortfalls in meeting government production targets stem from systemic challenges such as chronic underinvestment and rampant oil theft, all contributing to suppressed output.
The decline in oil production and the falling oil prices in the international market are likely to strain fiscal revenues, exacerbating budgetary pressures.
This will detrimentally impact national reserves, thereby reducing the availability of resources for developmental spending. While the government has no control over global oil prices, it can, to some extent, meet its OPEC production quota.
Therefore, the government must intensify efforts by enforcing stricter penalties for oil theft, while fostering greater collaboration with local communities.
Simultaneously, there is a need to attract investment in the sector by ensuring that regulatory bodies and the judiciary work together to provide an enabling environment for investment and modernisation of oil infrastructure.
