Good News For Naira as Nigeria’s Crude Oil Production Hits Two-Month High

• Nigeria’s crude oil production increased in April amid a global decline in prices, which affects Nigeria’s budget performance
• Data from the Nigerian Upstream Petroleum Regulatory Authority (NUPRC) shows that Nigeria produced 1.486mbpd in April
• However, the improved production fell below the 1.5 million barrels daily set by the Organisation of Exporting Countries (OPEC)

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Nigeria’s crude oil output hit a two-month high in April, showing a modest recovery.

However, the new production is below Nigeria’s assigned quota set by the Organisation of the Petroleum Exporting Countries (OPEC).

Nigeria’s improved production fails OPEC test

According to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the country pumped about 1.486 million barrels daily in April, from 1.401 million barrels in March.

April figure shows Nigeria’s best performance since February, but is short of the 1.5mbpd quota allotted by OPEC for the review period.

NUPRC disclosed that the crude production was 99% of the OPEC quota at 1.5.

According to reports, Nigeria’s crude oil production, including condensates, for April reached 1.683 mbpd.

The upstream regulator stated that OPEC does not include condensates in its quota for member countries.

Nigeria ramped up production in April

The NUPRC report showed that daily production in April ranged between 1.60 million barrels daily at its lowest and 1.73 million bpd at its peak.

The daily average comprised 1.485.700 bpd of crude oil and 197,607 bpd of condensates, hitting 1,683,307 bpd.

Nigeria’s oil production has been unstable in the first quarter of 2025, with output hitting 1.539 million barrels daily in January, 1.466 mbpd in February, before declining to 1.401 mbpd in March, and later recovering to 1.486 mbpd in April.

FG sets ambitious targets for crude production

BusinessDay reports that Presidential Adviser on Energy, Olu Verheijen, announced that Nigeria targets a boost in daily production to 2.7 million barrels of combined crude and condensate by 2027.

She disclosed that the OPEC quota does not include condensate, saying that the country has set an ambitious target for a combination of condensate and crude.

The announcement came as OPEC reportedly affirmed that it will continue to monitor member countries’ adherence to their crude production quotas.

Experts laud the improved production

Meanwhile, experts have disclosed that the increased output puts the country on a competitive edge following the drop in global crude prices.

They disclosed that the only way for the country to come out of the drop in FX earnings was to ramp up crude production and exports.

“Crude oil contributes a significant part of Nigeria’s FX earnings, and a decline in production means a depleted reserve, Adeola Yusuf, an energy expert, told Legit.ng.

He said improving oil production is key to meeting several government targets, especially as it has budgeted $75 per barrel in the 2025 budget.

Janet Ogochukwu, economist and senior banker, hailed the move, saying the improved crude output means increased FX earnings, which will affect the naira positively.

“The naira suffers from depleted reserves, which is caused by low FX earnings, she stated.

Investors quickly divest from economies with low reserves because it means that they will not move their investments when they need them. That also affects local currencies as the central bank will not have enough FX to defend the currency,” she said.

Nigeria exceeded its OPEC quota in March

In March, Legit.ng reported that Nigeria produced 70,000 barrels per day above the assigned quota by the Organisation of Petroleum Exporting Countries (OPEC). 

A Reuters survey shows that OPEC production increased in February as Iranian exports steadied despite attempts by the US to stop the flow. 

OPEC countries produced 26.74 million barrels daily in February, 170,000 bpd above January’s output, with Iran and Nigeria having the largest gains.

OPEC and its partners are keeping production cuts in place in March due to hopes of limited demand and rising production outside the cartel.

Nigeria gains new status in Africa

Legit.ng earlier reported that Nigeria has met and exceeded the oil production quota set by the Organisation of the Petroleum Exporting Countries (OPEC).

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed this recently.

In January 2025, the country focused on increasing oil production, raising average daily crude production to 1.538 million barrels, almost 39,000 more than the 1.5 million barrels per day set for it by the global oil cartel.

Source: Legit.ng