Nigeria’s Oil Output Hits 1.78mbpd in July, Cuts Revenue Deficit as Industry Pushes for Energy Reform
Nigeria’s crude oil production rose to 1.78 million barrels per day (mbpd) in July 2025—the highest output recorded so far this year—marking a 5% increase from June’s 1.7 mbpd. This uptrend brings renewed optimism about achieving the Federal Government’s 2.06 mbpd budget benchmark before year-end. The rebound helps narrow a significant revenue gap, as the country had lost over $5.3 billion in oil revenue due to underproduction in the first half of the year (H1). The NUPRC described the July improvement as a key milestone under the Tinubu administration’s renewed oil production mandate.
Despite recent gains, Nigeria fell drastically short of its production targets in H1. Monthly deficits from January to June totalled nearly 70.7 million barrels, translating into about N7.95 trillion in lost revenue at the $75 per barrel benchmark. The shortfalls were largely attributed to crude theft, pipeline vandalism, upstream investment stagnation, and technical issues across major fields. The July recovery was aided by Project 1 MMBOPD, regulatory reforms, and improved asset efficiency, according to NUPRC officials.
Speaking at the 2025 Society of Petroleum Engineers (SPE) NAICE conference, NNPCL’s Group CEO Bayo Ojulari called for a “bankable and sustainable” investment strategy for Nigeria’s oil and gas sector. He argued that while fossil fuels remain crucial to Africa’s energy future, Nigeria must integrate hydrocarbons with new technologies like carbon capture and hydrogen. Ojulari stressed the need for transparency, governance, and investment predictability to unlock global capital, stating that institutional reforms are essential to drive the country’s $1 trillion energy opportunity.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, emphasized natural gas as the backbone of Nigeria’s energy security and clean energy transition. Under the administration’s “From Gas to Prosperity” agenda, the government is expanding industrial gas supply, clean cooking initiatives, and modular LNG/CNG infrastructure. Projects such as the OB3 and AKK pipelines are ongoing, while financing from the MDGIF is being channelled into critical gas infrastructure. Ekpo reiterated the importance of technology, supply chains, and skilled human capital in achieving Nigeria’s energy targets.
Farouk Ahmed, Chief Executive of the NMDPRA, underscored the importance of technology and clear policy frameworks in transforming Nigeria’s energy landscape. He highlighted how digital tools, AI, and smart grid systems could help meet rising global energy demand while ensuring sustainability. Ahmed also pointed to geopolitical pressures and carbon neutrality goals reshaping the global energy market, urging Nigeria to modernize its regulatory environment and build institutional capacity to remain competitive. Stakeholders across the industry agree that collaboration, innovation, and investment reforms are critical for Nigeria’s long-term energy success.
Source: Guardian