Nigeria Finally Meets OPEC’s Crude Oil Production Quota Of 1.5m Bpd

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Nigeria Finally Meets OPEC’s Crude Oil Production Quota Of 1.5m Bpd

Nigeria’s crude oil production has reached a significant milestone, as the country recorded an average daily output of 1.53 million barrels per day (bpd) in January 2025, according to the Organisation of Petroleum Exporting Countries (OPEC).

For the first time since the production quota was set at 1.5 million bpd in November 2023, Nigeria has successfully met the target, marking a crucial moment for Africa’s largest oil producer.

OPEC’s latest Monthly Oil Market Report, released on Wednesday, revealed that Nigeria’s January output represents a 54,000 bpd (3.6%) increase from 1.48 million bpd in December 2024. With this surge, Nigeria has retained its position as Africa’s leading oil producer, outpacing Algeria, which recorded 907,000 bpd.

Meanwhile, Congo produced 251,000 bpd, securing its spot as the continent’s third-largest producer.

However, data from secondary sources tell a slightly different story. According to independent energy intelligence platforms, Nigeria’s crude production actually declined by 2% in January, falling from 1.52 million bpd in December to 1.49 million bpd.

The report also provided insights into OPEC’s broader crude production trends. Overall, OPEC-12 crude production averaged 40.62 million bpd in January, reflecting a month-on-month drop of 118,000 bpd.

While oil output increased in Libya, Congo, and Gabon, it declined significantly in Nigeria, the UAE, and Venezuela.

Outside the cartel, non-OPEC crude production stood at 13.94 million bpd, with Kazakhstan seeing an increase while Russia’s production declined.

OPEC expressed optimism about Nigeria’s oil sector, pointing to the Dangote Refinery as a potential game-changer for the industry.

“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,” the report stated.

On February 10, Edwin Devakumar, Vice-President of Dangote Industries Limited, told Reuters that the refinery could hit full capacity within 30 days. Once fully operational, the plant is expected to process 650,000 barrels of crude per day, exceeding local demand for petroleum products.

The federal government, led by Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has set an ambitious target to increase crude oil production to three million bpd by 2025.