*As inflation eases to 33.40% in July
By Citizenship Daily
The Organization of Petroleum Exporting Countries’s (OPEC) August Monthly Oil Market Report has revealed that Nigeria’s oil production for July 2024 increased by 30,000 barrels per day (bpd), from 1.27 million bpd to 1.30 million bpd.
The report was quoted by Nigeria Economic Update Issue 32 published today, August 27.
This makes Nigeria the largest oil producer in Africa and brings the country closer to OPEC’s 2024 production quota of 1.38 million bpd, though significantly lower than the Federal Government’s 2024 budgeted benchmark of 1.78 million bpd.
The report also showed that crude oil prices increased by $1.21 to $84.43 per barrel in July, signifying strong potential for the country’s foreign reserves and revenue.
Both increases will benefit the Nigerian economy because they will boost oil exports, which will increase foreign exchange inflow and strengthen the nation’s foreign reserves. However, challenges such as oil bunkering, illicit refining, crude oil theft and other production-related issues have ravaged the oil sector, causing oil production to fall below budget and OPEC benchmarks.
With OPEC increasing Nigeria’s crude oil production quota to 1.5 million bpd in 2025, sustained efforts are required from the government to address these challenges and capitalize on its oil production potential.
Also, the government should implement stricter security measures and enhance surveillance around oil facilities.
This could involve investing in advanced technology for monitoring and tracking oil production to help reduce losses and improve overall efficiency.
