Nigeria meets crude oil production quota of 1.5m bpd – OPEC

Nigeria produced an average of 1.53 million barrels per day (bpd) of crude oil in January, the first time since the 2024 period that the nation has met the 1.5 million bpd production quota imposed by the Organisation of Petroleum Exporting Countries (OPEC). OPEC's monthly oil market report states that the nation's production rose 3.6% from 1.48 million barrels per day in December. Nigeria now produces more oil than any other country in Africa, surpassing Algeria, which produced 907,000 barrels per day in January

The quota, initially set in November 2023, was extended to 2026 due to Nigeria’s struggles to meet the target in 2024. However, the recent increase in production indicates a positive turnaround.

OPEC gathers oil production data from two sources: direct communication with Nigerian officials and secondary sources such as energy intelligence platforms. While direct figures confirm that Nigeria met its quota, secondary sources report a slight decline of 2% in January to 1.49 million bpd from 1.52 million bpd in December.

The report also highlights that Nigeria’s oil production is expected to rise further as the Dangote Refinery nears full capacity. Once fully operational, the refinery will process 650,000 barrels of crude daily, potentially stabilising petroleum supply and lowering fuel prices.

“…the oil sector remains central to the economy, and the Dangote Refinery reaching full production capacity should help stabilize the petroleum product supply and possibly lower petrol prices,” OPEC said.

On February 10, Edwin Devakumar, Vice-President of Dangote Industries Limited, stated that the refinery is expected to reach full operations within 30 days. Meanwhile, Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri reaffirmed the federal government’s plan to increase crude oil production to three million barrels per day by 2025.