Nigeria increased its oil production to 1.78 million barrels per day (bpd) in July, bringing output closer to its previous peak of 1.8 million bpd recorded last November.
This is the country’s highest output in eight months and reflects ongoing efforts to recover from years of oil theft, under investment and pipeline sabotage that have crippled the sector.
The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe, disclosed this on Monday at an energy conference in Abuja.
Komolafe stated that the recent gains followed stronger field monitoring, improved operational strategies, and security reinforcements in the Niger Delta region.
“As of July, Nigeria’s oil production averaged 1.78 million barrels per day, marking a strong push toward the national target of 3 million bpd,” Komolafe said.
“We are determined to work with all relevant stakeholders to sustain the current recovery trend and ensure the long term growth of the upstream sector.”
Security and investment drive recovery
Moreover, Komolafe attributed the production growth to increased collaboration between the government, private operators, and security agencies.
He explained that the country’s goal to add an extra 1 million bpd to its current levels was still on course, adding that the NUPRC remained focused on restoring confidence across the value chain.
The Niger Delta, home to most of Nigeria’s oil fields, has long struggled with pipeline vandalism and illegal bunkering.
This led to sharp output declines in recent years, hitting Nigeria’s revenue and foreign exchange earnings.
But recent security interventions and community engagement efforts have helped reduce disruptions and restore some level of stability to crude exports.
“We have intensified surveillance across major assets and are deploying digital monitoring tools to ensure better oversight of production activities,” Komolafe stated.
He also mentioned that the commission was pursuing reforms to improve data accuracy, attract foreign investment, and promote transparency in line with the Petroleum Industry Act (PIA).
Crude still key to Nigeria’s economy
Crude oil remains Nigeria’s top revenue source, accounting for nearly two thirds of government income and more than 80% of the country’s foreign currency earnings.
While recent investments in natural gas and renewable energy aim to diversify the economy, the Federal Government continues to rely on crude output for fiscal stability.
As of early 2024, Nigeria had struggled to meet its Organisation of the Petroleum Exporting Countries (OPEC) quota due to aging infrastructure and limited investment.
But with the latest output numbers, Komolafe said Nigeria was on track to maintain its position as Africa’s largest oil producer.
“We are not where we want to be yet, but these figures show we’re heading in the right direction,” he added.
The commission is expected to release updated official data in the coming weeks.
