Nigeria’s Oil Output Closes in on 1.7m bpd Target for 2024 Budget

Nigeria is nearing its 2024 budget target of 1.7 million barrels per day (bpd) as oil production reached 1.4 million bpd in August 2024, up from 1.3 million bpd in July—a 3.4% increase. This was disclosed in the September 2024 Monthly Oil Market Report by the Organisation of Petroleum Exporting Countries (OPEC).

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) added that with the inclusion of 227,000 bpd of condensate, total output surpasses 1.6 million bpd. On a year-on-year basis, oil production rose by 16.7%, from 1.2 million bpd in August 2023 to 1.4 million bpd in August 2024.

Nigeria remains Africa’s leading oil producer, though production continues to be impacted by challenges such as pipeline vandalism, illegal refining, and oil theft. Experts believe Nigeria could produce over 2.5 million bpd if these issues were addressed. However, efforts to curb oil theft and transfer assets from international oil companies to local firms are showing signs of improvement.

Despite rising output, the price of Nigeria’s Bonny Light crude was around $71 per barrel, which is below the 2024 budget benchmark of $77.96 per barrel.