Nigeria’s crude oil production dipped below its OPEC quota in August, ending a two-month streak of meeting the group’s output target.
According to OPEC’s direct communication data, Nigeria produced an average of 1.434 million barrels per day (bpd) in August, a decline from 1.507 million bpd in July.
The August output is Nigeria’s lowest in six months and falls short of the country’s OPEC allocation of about 1.5 million bpd.
The setback follows brief gains recorded in June and July, when Nigeria’s output had inched closer to the quota after months of underperformance.
Analysts say the renewed slump is linked to crude theft, pipeline vandalism, and technical disruptions at oil terminals.
Energy experts interviewed by BusinessDay warned that the decline could weaken Nigeria’s revenue outlook, especially as the federal government relies heavily on oil earnings to fund its 2025 budget.
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Oil accounts for more than 80 percent of Nigeria’s export revenues.
In response, the Nigerian National Petroleum Company Limited (NNPC) has vowed to scale production to at least 1.7 million bpd before year-end through increased security in the Niger Delta and fresh investments in upstream projects.
However, industry observers stress that sustained reforms and significant infrastructure upgrades will be required to hit this target.
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