How Nigeria's crude oil production crashed despite reserve increase

• Nigeria’s crude lipid accumulation has suffered different setback arsenic accumulation slumped to 1.4 cardinal barrels from 1.465
• Nigeria’s crude accumulation had averaged 1.5 cardinal barrels regular successful Nigeria, the nonstop quota assigned by OPEC to the country
• However, crude lipid output began to descent successful February done March, dashing the anticipation of realising 3 mbpd successful 2025

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

Following the planetary crude oil terms crash, Nigeria’s mean regular crude accumulation declined again successful March, threatening the section currency and the nationalist budget.

Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that the regular crude accumulation fig averaged 1.40 cardinal barrels daily, from 1.465 successful February.

President Bola Tinubu's authorities faces pugnacious times arsenic crude output declines. Credit: Alliance Photo/Contributor
Source: Getty Images

Nigeria’s crude accumulation crashed successful February

In January, Nigeria’s crude accumulation roseate somewhat supra 1.5 cardinal barrels daily, a quota allocated to the federation by the Organisation of Petroleum Exporting Countries (OPEC).

The January output accrued hopes that the state mightiness realise its ambitious 2 cardinal barrels regular people successful 2025.

However, successful February, lipid accumulation slumped, and this was repeated successful March, starring to doubts astir the program to execute the 2 cardinal barrels per time goal.

Also, lipid accumulation dipped from 1.78 mbpd successful January to 1.67 mbpd successful February and 1.603 mbpd successful March.

NUPRC shows Nigeria’s crude output 

NUPRC stated that the lowest and highest accumulation successful March were 1.49 cardinal barrels and 1.76 cardinal barrels, respectively.

The regular mean accumulation successful March was 1,603,776 barrels per day, comprising lipid and condensate.

Nigeria could not conscionable the mean crude lipid output quota assigned by OPEC passim 2022, 2023, and 2024.

However, the Nigerian authorities began 2025 positively, with accumulation rising from 1.4 mbpd successful December 2024 to 1.5 mbpd successful January 2025.

Experts person said that crude lipid theft and pipeline vandalism were among the apical factors preventing the state from gathering its OPEC quota implicit the years.

Nigeria’s crude lipid accumulation people is threatened

Punch reports that the Minister of Petroleum Resources (Oil), Heineken Lokpobiri, disclosed that Nigeria could scope 3 cardinal barrels of crude lipid accumulation successful 2025.

The Minister insisted that the state would ramp up accumulation by tapping into President Donald Trump’s lipid drilling plan.

Lokpobiri said the 3mbpd would see condensates, saying that Nigeria would summation accumulation without infringing connected OPEC’s guidelines.

However, that program whitethorn person evaporated pursuing the existent driblet successful regular lipid production.

Nigeria’s crude cargoes look sluggish acceptance

Oil prices person crashed by implicit $10 beneath $75 per barrel, the benchmark terms for Nigeria’s 2025 budget.

According to reports, Brent crude terms deed $64.76 per tube connected Sunday, April 13, 2025, portion West Texas Intermediate (WTI) sold for $61.50.

Argus Media reported that crude lipid grades from Nigeria faced dilatory acceptance successful the April commercialized rhythm owed to the availability of lower-priced alternatives.

Nigeria's projected 3 cardinal barrels regular crude accumulation successful information amid diminution successful output
Source: Getty Images

The study revealed that the commercialized rhythm has shifted to May, with 15 April-loading Nigerian cargos inactive searching for buyers.

Nigeria's lipid and state Reserves deed a caller high

Legit.ng earlier reported that the Nigerian Upstream and Petroleum Regulatory Commission (NUPRC) has announced that Nigeria's official petroleum reserves person accrued to 37.28 cardinal barrels of crude lipid and condensate, on with 210.54 trillion cubic feet of earthy gas.

The NUPRC disclosed this precocious successful a release, declaring the country’s reserve presumption successful crude lipid and earthy gas.

According to the merchandise signed by NUPRC main enforcement officer, Gbenga Komolafe, Nigeria’s proven (2P) crude lipid and condensate reserves basal astatine 31.44 cardinal barrels and 5.84 cardinal barrels respectively.

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Source: Legit.ng