Nigeria’s crude oil production exceeded its OPEC quota for the second consecutive month, hitting an average of 1.507 million barrels per day (bpd) in July 2025. According to the latest Monthly Oil Market Report from the Organization of the Petroleum Exporting Countries (OPEC), this figure is 7,000 bpd above the country’s allocated quota and slightly higher than the 1.505 million bpd recorded in June. The sustained increase points to improving stability and output in Nigeria’s oil sector.
This marks the third time in 2025 that Nigeria has matched or surpassed its OPEC quota — specifically in January, June, and now July. January remains the peak month so far, with an output of 1.54 million bpd. However, the country’s oil production has seen fluctuations throughout the year, dropping to 1.46 million bpd in February and reaching a low of 1.40 million bpd in March, before bouncing back slightly in the months that followed.
Energy experts suggest the continued output growth reflects progress in the government’s Project One Million Barrels Initiative, launched in 2024. The initiative aims to add one million barrels to daily crude production through reactivating dormant fields, expediting regulatory approvals, and improving upstream operations. The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, attributed the recent uptick to these ongoing reforms.
According to Komolafe, Nigeria’s combined crude and condensate production now averages between 1.7 and 1.83 million bpd a significant rise from 1.4 million bpd. He emphasized that the administration’s push to enhance operational efficiency across the value chain is yielding results. This momentum, he said, is part of the government’s broader strategy to reach 2.5 million bpd by 2026.
While challenges in security and infrastructure persist, analysts believe the current trend signals renewed investor confidence in Nigeria’s oil sector. With global oil prices under pressure and OPEC+ maintaining tight supply controls, Nigeria’s ability to sustain production growth may strengthen its fiscal outlook. The government hopes to use this momentum to meet long-term output targets and stabilize foreign exchange earnings.
Source: Punch