Amidst ongoing efforts by the federal government to bolster Nigeria's oil production, recent data reveals a concerning downturn. According to the Organisation of Petroleum Exporting Countries (OPEC) March Monthly Oil Market Report (MOMR), Nigeria's oil output, excluding condensate, experienced a notable month-on-month decline of seven percent, dropping to 1.3 million barrels per day (bpd) in February 2024 from 1.4 million bpd in January 2024.
While the year-on-year comparison shows a consistent output of 1.3 million bpd, concerns arise over the nation's reliance on oil revenues and the sustainability of the 2024 budget, which anticipated a production level of 1.78 million bpd.
Despite Nigeria's status as the leading oil producer in Africa, with Equatorial Guinea trailing behind, uncertainties loom regarding the impact of fluctuating oil production on the country's economic stability.
However, an anonymous expert suggests that Nigeria's total output may surpass reported figures, factoring in condensate production, which could mitigate the budgetary shortfall. While January saw a temporary uptick in production to 1.43 million bpd, recent trends underscore the volatility of Nigeria's oil sector and the challenges ahead in maintaining fiscal equilibrium amidst fluctuating oil prices and production levels.
