Nigeria’s crude oil production witnessed a decline to 1.42 million barrels per day (mbpd) in January 2024, as revealed by the latest report from the Organisation of the Petroleum Exporting Countries (OPEC).
This drop of 3,000 barrels per day (bpd) from December’s 1.422mbpd, though marginal, raises concerns given the Federal Government’s projection of 1.78mbpd in the 2024 budget.
President Bola Tinubu’s ambitious budget proposal aimed to surpass the current crude oil output, indicating a reliance on oil revenue to fund the N28.7 trillion budget.
READ ALSO: Nigeria’s Oil Output Reached 1.4m Bpd, Propels Global Benchmark Amid Fueling Economic Hope
However, Nigeria’s production trajectory seems to be moving in the opposite direction, posing challenges for revenue generation and budget implementation.
OPEC’s report highlighted increases in crude oil output from the United Arab Emirates, Saudi Arabia, and Venezuela, while Nigeria experienced a decline. The total production among OPEC states averaged 26.34mbpd, witnessing a reduction of 350,000bpd.
Globally, the preliminary data indicated a decrease in oil production by 0.6 million barrels per day to an average of 101.8mbpd in January. While non-OPEC liquids production slightly decreased, OPEC natural gas liquids saw a year-on-year increase.
The share of OPEC crude oil in total global production also dipped to 25.9%, down by 0.2 percentage points from the previous month.
Despite Nigeria’s recent dip in crude oil production, it’s essential to note that in December 2023, the country experienced a slight increase to 1.418mbpd. However, maintaining consistency in production levels remains crucial for sustaining revenue streams and achieving budgetary targets.
As Nigeria navigates the complexities of the oil market, attention to production stability and diversification efforts becomes imperative to ensure fiscal sustainability and economic resilience in the face of fluctuating oil prices and global demand shifts.