In July 2023, Nigeria experienced a significant decline in oil production, registering a 13.6% decrease to an average of 1.08 million barrels per day (mbpd), compared to June’s 1.25 mbpd, as per the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) data.
This decline poses a notable challenge for the Nigerian government, which had set a target of 1.69 mbpd for oil production in the 2023 budget. Moreover, the July production volume is significantly below the country’s OPEC-assigned quota of 1.7 mbpd.
The NUPRC’s recently released figures indicate that the daily production of blended and unblended condensate oils in July reached 38,258 barrels and 174,509 barrels, respectively. However, these condensate oil outputs do not factor into Nigeria’s OPEC production allocation.
Overall, the daily average oil production for July averaged at 1.29 mbpd, marking a substantial 12.8% decline compared to June’s daily average of 1.48 mbpd.
Opinion: The recent drop in Nigeria’s oil production highlights the need for the country to diversify its revenue streams and economic activities. As oil production faces volatility due to various factors, focusing on other sectors and fostering a conducive investment climate will be crucial for Nigeria’s long-term economic stability and growth. The decline underscores the importance of economic diversification and creating an attractive investment environment for long-term stability.