Nigeria’s crude oil production witnessed a notable decline in September, with a drop of 33,000 barrels per day, bringing the average output to 1.405 million barrels per day (bpd), according to the Organisation of Petroleum Exporting Countries (OPEC).
OPEC’s October oil market report, drawing from secondary data provided by Nigerian authorities, showed a decrease from August’s production level of 1.438 million bpd.
The country’s oil production struggles reflect broader challenges in meeting its OPEC production quota and satisfying domestic refinery demand.
For months, Nigeria has wrestled with maintaining a stable oil output. Since the start of the year, production figures have fluctuated, mostly ranging between 1.2 million and 1.3 million bpd, far below its potential capacity.
Experts trace this shortfall to a combination of operational inefficiencies, infrastructure vandalism, and crude oil theft – factors that have long plagued the nation’s oil sector.
This latest production dip underscores the difficulties Nigeria has faced in keeping pace with its OPEC commitments.
In previous years, the country consistently surpassed the 2 million bpd mark, making this steady decline a growing concern.
Nigeria’s oil sector, once a major player on the global stage, has faced an uphill battle for recovery following years of underinvestment and a volatile international oil market.
Despite efforts by the government to implement reforms and attract foreign investments, Nigeria’s oil production has yet to rebound fully.
The September decrease adds to the pressure, especially as the country seeks to maximise its oil revenue amid economic challenges.
The oil sector remains crucial to Nigeria’s economy, contributing nearly 90% of export earnings and 50% of government revenue.
Yet, with declining production levels, the country’s ability to generate the much-needed foreign exchange and support other key sectors remains in jeopardy.
As Nigeria aims to regain its former production heights, the question remains: Can it overcome the long-standing issues that have hampered its progress, or will the country continue to face declining fortunes in the oil industry?
