According to recent reports on Nigeria’s oil production, the Federal Government has witnessed a significant increase in crude oil earnings, amounting to approximately N449.93bn over December 2023 and January 2024.
Despite the Nigerian Upstream Petroleum Regulatory Commission not yet releasing oil production figures for February 2024, data indicates a consistent upward trend in Nigeria’s oil output during December 2023 and January 2024.
In December 2023, the country’s oil production (excluding condensates) surged by 3.88 million barrels compared to the previous month. With Brent crude averaging $77.63/barrel in December, this increase translated to an additional earning of $301.2m (equivalent to N244.79bn at the official exchange rate).
Similarly, January 2024 saw a further rise in oil production, with Nigeria producing 2.81 million more barrels of crude oil than in December 2023. With Brent crude averaging $80.12/barrel in January, this resulted in an additional earning of $225.14m (approximately N205.14bn at the official exchange rate).
Combining the increased earnings from December 2023 and January 2024, the Federal Government garnered an extra N449bn during the two-month period.
The Nigerian Upstream Petroleum Regulatory Commission reported that crude oil production volumes increased in both months, with January 2024 seeing a total production volume of 44.2 million barrels (excluding condensates).
In light of these developments, the NUPRC recently announced a new crude oil production target for Nigeria of 2.5 million barrels per day. This initiative aims to boost the country’s foreign exchange reserves and enhance economic resilience.
Gbenga Komolafe, Chief Executive of the NUPRC, emphasized the need to bridge the gap between actual oil production and technical potential, highlighting the investment opportunities this presents. He also underscored Nigeria’s vast energy resources and youthful population as key factors in driving economic growth and development.
Komolafe expressed optimism about Nigeria’s potential to lead Africa’s sustainable energy future, leveraging its human, natural, and material resources for economic prosperity.