Nigeria’s oil output, including condensate, is projected to remain low at 1.4 million barrels per day (mbpd) in the second half of 2024, falling short of the 1.8 mbpd quota set by OPEC and the 1.7 mbpd benchmark in the 2024 budget.
This shortfall is expected to result in a revenue gap of approximately N1 trillion against budget expectations.
Data shows a continued decline in oil production throughout 2024, with output dropping from 1.6 mbpd in January to 1.3 mbpd by April.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reports a decrease in the country’s rig count and exploration activities, contributing to the lower production levels.
Energy experts and analysts predict that Nigeria will likely struggle to meet its oil output targets for the remainder of the year, which could negatively impact the national budget.
To address the production challenges, industry leaders advocate for measures such as reducing oil theft, improving infrastructure, and enhancing governance.
Despite having substantial reserves, experts emphasize the need for a transformative oil policy and better investment in deep-water fields to increase production capacity and meet economic goals.
(Vanguard)