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African Economy
How Nigeria produced 566.8mbpd of crude oil in 2024’
production of oil and gas
Nigeria produced a total of 566.8 million barrels of crude oil and condensate in 2024 as it seeks to ramp up oil production and meet local and international obligations, a report has revealed.

Though the Daily Average of Crude Oil production (without condensate) stood at 1.34 mbpd and 1.56 mbpd inclusive of condensate in 2024, with the highest monthly production of 1.69 mbpd in November, the lowest of 1.23 mbpd was recorded in March 2024.

The performance was against a target of 1.78 mbpd set for 2024.

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According to the data, this shows a slight, but consistent increase in crude oil production over the past year 2023, where the Daily Average of Crude Oil production (without condensate) was 1.23 mbpd and 1.47 mbpd inclusive of condensate.

Though Nigeria is still far behind in terms of meeting the 2.2m barrels set for 2025, upon which the 2025 budget was benchmarked, authorities are said to be making frantic efforts to increase oil production and improve the revenue of Nigeria.

The figure was contained in the midterm report (May 2023 – May 2025) of the Ministry of Petroleum Resources against the backdrop of the set objectives under the Renewed Hope Programme.

Breakdown of monthly production 

According to the figure, January started on a high note with 1.64mbpd recorded, while February recorded 1.53mbpd, while March recorded 1.44 mbpd.

In April, there was a slight increase to 1.45 mbpd, just like in May when the nation produced 1.47 mbpd. Also, in June production increased to 1.50 mbpd with a further increase in July to 1.53 mbpd, while August recorded 1.57 mbpd. In September, 1.54 mbpd was achieved, while October had 1.54 mbpd, followed by 1.69 mbpd in November, and December recorded the highest of 1.67 mbpd in 2024.

With the number which shows a slight, but consistent increase in crude oil production over the past year 2023, the country retained its position as the largest oil producer in Africa, while the country has consistently met its OPEC quota.

Gas production marginally increases

Similarly, according to the report, the Total Gas Production in 2024 stood at 2,508,327.51 (mmscf), comprising 1,440,742.48 mmscf for Associated Gas and 1,067,585.02 mmscf for Non-Associated Gas.

This was an increase from the 2,491,481 mmscf recorded in 2023 as the country leverages its abundant mineral deposits to improve revenue.

But more importantly, analysts believe there was a need for a more investor-friendly regulatory environment to improve the numbers.

According to the federal government, the Ajaokuta–Kaduna–Kano (AKK) Natural Gas Pipeline and Oben-Obrikom- Obiafu (OB3) Projects, which stood at 76.73% and 98.47% completion as of the end of 2024, would boost the government’s efforts to improve gas revenue.

The report said, “The completion of the AKK and OB3 Gas pipeline projects will help to ensure a more reliable and sustainable supply of natural gas across the country. This is crucial for both economic development and environmental sustainability.

“The commissioning of the AHL Gas Processing Plant, ANOH Gas Processing Plant, and the 23.3km x 36-inch ANOH-OB3 Gas Pipeline Projects in Delta and Imo States will address critical energy infrastructure needs in Nigeria, enhance natural gas utilization, and contribute to the nation’s economic and environmental goals

“The Midstream and Downstream Gas Infrastructure Fund Council, in line with Section 52 of PIA 2021, has approved seed investment in Six (6) Midstream and Downstream Gas projects to the tune of N122 billion that will accelerate Mr. President’s “Gas to Prosperity Agenda” across various parts of the country.

“This is a critical first step, and it is expected that more approvals and project monitoring will be carried out to ensure these projects are delivered on time and within budget.”

Divestment

One major development in the oil and gas sector is the divestment by oil firms as well as the attraction of final investment decision (FID) to the tune of $5bn.

By ensuring that President Bola Ahmed Tinubu’s directives on regulatory policies are carried out, and addressing key stakeholder concerns, the Ministry of Petroleum was said to have created an enabling environment that attracted Shell SPDC and partners’ commitment.

The investment, according to analysts, will enhance offshore production, generate substantial revenue, create jobs, and promote local content participation, reinforcing Nigeria’s position in global deep-water oil production.

Some of the divestments included the Oando Petroleum and Natural Gas Company Limited acquired the Nigerian Agip Oil Company (NAOC) from Eni.

The transaction increased Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20% to 40%, as well as raised Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure.

“The transaction also grows Oando’s exploration asset portfolio through the acquisition of a 90% interest in OPL 282 and a 48% interest in OPL 135,” the statement noted.

Chappal Energies, through its project vehicle Odinmim, acquired Equinor Nigeria’s assets. Seplat Energy acquired Mobil Producing Nigeria Unlimited (MPNU), a subsidiary of ExxonMobil, while Renaissance completed the landmark transaction between itself and Shell for the acquisition of the entire (100%) equity holding in the oldest oil firm in Nigeria at a sum of $2.4bn.

Analysts believe that two years into the Bola Tinubu-led administration, the petroleum sector is witnessing initial signs of change, including modest investment inflows into the Niger Delta, renewed efforts to curb oil theft, and gains in production, suggesting the first steps on a long road to recovery.

To stimulate the sector, President Tinubu signed an Executive Order on Wednesday introducing a performance-driven fiscal framework aimed at linking tax incentives to verifiable cost savings for operators.

This builds on earlier executive orders targeting fiscal terms and local content bottlenecks.

According to experts, while major new field investments remain pending, these measures appear to be encouraging reinvestment in existing assets.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also launched its “Project 1 Million Barrels of Oil Per Day” (1MMBOPD) initiative to galvanise producers. However, Nigeria’s commitment to OPEC’s new production caps, around 1.8m bpd, presents a balancing act for its short-term output ambitions.

Nigeria still short of production target – Expert

Speaking with our correspondent, Wumi Iledare, Professor Emeritus of Petroleum Economics, described the two-year record card in the petroleum industry as a mixed feeling.

He stated that on the reform front, the Tinubu administration has made notable progress in implementing the Petroleum Industry Act (PIA), adding that Key regulatory agencies—the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)—have been strengthened.

However, he observed that a critical gap remains, which is the absence of governing boards as mandated by the PIA. Does that matter? Absolutely—it’s a legal requirement that cannot be overlooked.

He added, “The transition of the Nigerian National Petroleum Company (NNPC) into a fully commercial entity has advanced, but concerns persist regarding transparency and corporate governance. The push for commercial efficiency must be guided by sound economic principles, not political expediency.

“On the production side, Nigeria has continued to fall short of its targets. Crude oil output hovered between 1.2 and 1.5 million barrels per day, well below the benchmark of 1.8 million bpd. Oil theft, pipeline vandalism, and technical challenges continue to plague the sector. Still, higher global oil prices and improved remittances from NNPC provided a revenue boost, even as gains were offset by fuel subsidies and persistent forex instability.

“One of the administration’s key achievements was the commissioning of the Dangote Refinery in 2024, with a capacity of 650,000 bpd. Additionally, efforts have been made to rehabilitate state-owned refineries and expand domestic gas infrastructure through the “Decade of Gas” initiative. In this context, natural gas offers a strategic bridge towards a sustainable energy future. The focus should be less on short-term foreign currency earnings and more on long-term national development.

“Despite these strides, significant challenges remain. Progress on improving security in the Niger Delta and advancing environmental remediation—particularly the Ogoniland clean-up—has been slow. Renewable energy integration has received limited attention, and enforcement of gas flaring regulations remains inadequate.

“As the administration moves into its third year, stakeholders are calling for stronger accountability, faster refinery rehabilitation, and a clearly defined roadmap for Nigeria’s energy transition. To truly reposition the sector for sustainable growth, the industry must shift from a transactional to a transformational leadership model,” he added.

On his part, an economist, Dr. Marcel Okeke, told our correspondent that Nigeria must strive to improve its production output by removing impediments to oil production.

“As we speak, we are still at around 1.5m barrels per day, when our budget is 2.2m barrels. Also, the price of oil itself, the budget is based on $75 per barrel, and as we speak, crude oil is around $64 per barrel. This is an area where the government should do everything to increase crude oil production. So if export goes up, it brings foreign exchange inflow among other policies, this should be pursued vigorously, and also there should be proper diversification of the economy,” he added.
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