Confusion As FG, OPEC Give Conflicting Report On Nigeria’s Crude Oil Production

The Federal Government and the Organisation of Petroleum Exporting Countries (OPEC) disagree over Nigeria’s average daily crude oil production.

Speaking during a podcast in Abuja earlier, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed that the country’s oil production has reached 1.65 million barrels per day (bpd).

However, OPEC reported Nigeria’s production at 1.32 million bpd in February 2024.

During the podcast in Abuja hosted by Bruit Costaud in partnership with Ballard Partners of USA, Edun declared that Nigeria’s crude oil production had risen to 1.65 million bpd, up from 1.25 million bpd in June 2023.

The Minister stated, “The prices are still elevated, and as you know, in June 2023, oil production and sales were roughly 1.25 million barrels per day.

“Now, it is up to 1.65 million barrels per day, that is one source of bringing in dollars and revenue into the government coffers that is non-inflationary.”

OPEC, however, announced in its latest monthly oil market report that Nigeria’s average daily crude oil production fell to 1.32 million bpd in February.

This marks a decrease of 105,000 bpd or 7.36 percent from the 1.42 million bpd recorded in January.

The organization noted that the production data was obtained through direct communication with Nigerian authorities.

OPEC obtains information on crude oil production from two different channels: direct communication, which involves member countries of the organization, and secondary communication, which includes energy intelligence platforms. Despite its current drilling performance, the nation has managed to maintain its position as the largest oil producer in Africa.

According to OPEC, Libya is Africa’s second-largest producer, with a daily production of 1.17 million barrels. Algeria follows closely behind, with a production of 906,000 barrels per day.

Vanguard, however, quoted secondary sources within OPEC to have said that Nigeria’s crude production has increased to 1.476 million barrels per day, marking a 3.29 percent rise from the 1.429 million barrels per day reported by the oil cartel in January of this year.

“According to secondary sources, total OPEC-12 crude oil production averaged 26.57 mb/d in February 2024, 203 tb/d higher, mo- m. Crude oil output increased mainly in Libya and Nigeria, while production in IR Iran and Iraq decreased,” the report reads.

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