- Nigeria has reclaimed its position as the top African crude oil producer for May 2023, producing 1.184 million barrels per day according to OPEC data.
- The OPEC report highlighted Nigeria’s economic growth of 2.4% year-on-year in Q1 2023 but attributed slow growth to declining crude oil output.
- Nigeria’s economy faces challenges including high inflation, import restrictions, and subdued business activity and consumer spending, contributing to its economic burden.
Nigeria has regained its position as the top crude oil producer in Africa for May 2023, as reported by the Organization of Petroleum Exporting Countries (OPEC).
Nigeria produced 1.184 million barrels of crude oil per day during the month, according to direct communication data provided by OPEC. In comparison, Libya produced 1.158 million barrels per day, Angola produced 1.111 million barrels per day, and Algeria produced 962,000 barrels per day.
The OPEC report also highlighted Nigeria’s economic growth, stating that the country’s economy expanded by 2.4% year-on-year in the first quarter of 2023. However, the report attributed the slow growth to various factors, including a decline in crude oil output.
It should be noted that in April 2023, Nigeria experienced its first decline in crude oil production, with OPEC reporting a daily output of 999,000 barrels. In addition to declining oil production, Nigeria’s economy is facing challenges such as high inflation, import restrictions, and subdued business activity and consumer spending.
Inflation data for April 2023 showed an annual rate of 22.2%, indicating an ongoing acceleration compared to 22% in March 2023. These factors, along with a slowdown in the services, manufacturing, and farming industries, contribute to the economic burden faced by Nigeria.
Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC)
Meanwhile, data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has shown that the country produced 1.4 million barrels per day of crude oil in May 2023.
According to the Commission’s recently released crude oil production data, Nigeria produced 1,427,616 barrels of crude oil per day. The data is broken down as follows:
- Crude oil: 1,183,691 barrels per day
- Blended condensates: 65,887 barrels per day
- Unblended condensates: 178,038 barrels per day.
The addition of condensates makes up the value of 1.4 million barrels per day. Recall that during a June 1 interview, Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, said that when it comes to crude oil production, condensates are just as important as crude oil and should also be classified as liquids, adding up to the country’s overall production output.
What you should know
Nigeria has a new president and his administration plans to shake up the country’s oil and gas sectors and partner with the private sector on a large scale to increase Nigeria’s oil and gas output. According to a May 2023 policy document on the country’s energy industry, the administration also intends to connect the oil and gas industry to other sectors of the economy for growth purposes.
These sectors include:
- Agriculture and fertilizers
- Construction and manufacturing
- Local content expansion
- Human capital development
- Research and Development
- Refining and Petrochemicals
- Power generation
