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In April 2024, Nigeria's crude oil production increased by four percent to 1.28 million barrels per day compared to the 1.23mbpd recorded in March, according to data from the Nigerian Upstream Regulatory Commission, NUPRC.
Despite the Federal Government's efforts to boost oil production to meet the 1.78mbpd target for funding the 2024 budget, there was only a marginal improvement in production.
When combined with condensate oil, the production was 1.447 million barrels per day, slightly higher than the 1.438mbpd recorded in the previous month. In February and January, the production figures with condensate were 1.539 million barrels per day and 1.643 million barrels per day, respectively.
The Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri, had previously mentioned the government's plan to achieve two million barrels of oil production by the end of 2024. However, he attributed the recent drop in oil production to issues with the Trans Niger Pipeline and maintenance activities carried out by some oil companies in the country.
Lokpobiri assured that measures were being taken to address the situation and restore production to previous levels, with the aim of further increasing it. He anticipated that Nigeria's oil production, including condensate, which was around 1.7 million barrels per day prior to these developments, would soon be restored.
Furthermore, the Ministry of Petroleum Resources is actively involved in policy development aimed at maximizing the utilization of all available wells in Nigeria. This strategic approach is intended to enable the country to increase production, thereby generating crucial revenue to stabilize the nation's foreign exchange reserves. The increased revenue will also empower Nigeria to meet its economic goals.
Lokpobiri stated that the most efficient way to address our economic difficulties is by focusing on the oil and gas sector. Currently, oil is being sold for more than $90 per barrel, and by increasing production while also reducing oil theft and pipeline vandalism, we can generate the necessary funds to not only support our budget and address foreign exchange challenges, but also to stabilize our economy.
He emphasized that every country prioritizes security and investment in their oil assets, and it is one of our goals to minimize pipeline vandalism and oil theft.
While complete elimination may not be possible, collaborative efforts can significantly reduce these activities. This will allow us to benefit from the ongoing oil and gas production.
