Nigeria earned an estimated N41.74 trillion from crude oil and condensate production in the first six months of 2026, highlighting the continued importance of the petroleum sector to the nation’s economy. Analysis of data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revealed that the country produced about 295.18 million barrels between January and June, with an average daily output of 1.63 million barrels. While production remained slightly below the level recorded during the same period in 2025, the figures point to a steady recovery from the challenges that weighed on output in recent years.
The first half of the year witnessed a gradual improvement in production after a weaker February performance. Nigeria produced 50.45 million barrels in January before output dropped in February. However, production rebounded strongly from March and continued to rise through the second quarter. May recorded the highest monthly volume at 52.72 million barrels, while June closed with 52.06 million barrels and a daily production rate of 1.74 million barrels, reflecting growing stability across key oil-producing assets.
Rising and fluctuating global crude oil prices also played a major role in boosting the value of Nigeria’s production. Revenue estimates surged in March and April as geopolitical tensions pushed Bonny Light crude prices above $100 per barrel, reaching a peak average price of $126.71 in April. Although prices softened in May and June, the country still generated an estimated $28.08 billion from crude oil and condensate production during the six-month period, underlining the sector’s significant contribution to foreign exchange earnings.
Industry observers note that the improved performance comes amid intensified efforts by the Federal Government to combat crude oil theft, secure critical oil infrastructure and encourage investment in the upstream sector. The recovery has also helped Nigeria exceed its Organisation of the Petroleum Exporting Countries (OPEC) production quota for four consecutive months, a milestone that reflects improved operational conditions and reduced disruptions across production facilities.
According to the NUPRC, the sustained growth was driven by stable operations, improved crude evacuation efficiency and the absence of major pipeline outages. The commission described June as the fourth straight month of production growth, signalling a gradual turnaround for an industry that has battled theft, vandalism and operational setbacks for years. With oil revenue remaining central to Nigeria’s fiscal plans, experts say maintaining production above 1.7 million barrels per day in the second half of 2026 will be crucial for boosting government earnings, strengthening foreign exchange reserves and supporting economic growth.
source: punch
