Nigeria’s oil production surged in February, exceeding its OPEC quota of 1.5 million barrels per day by 70,000 bpd, and contributing to the cartel’s increased output in February, a Reuters survey has found.
The survey, released on Wednesday, revealed that Nigeria recorded the second-largest production increase among members of the Organization of the Petroleum Exporting Countries (OPEC), contributing to the bloc’s overall rise in output.
OPEC reportedly pumped 26.74 million bpd last month, up by 170,000 bpd from January’s total, with Iran contributing the highest increase of 80,000 bpd.
The increase in Nigeria’s output is attributed to a rise in crude oil exports and an increase in domestic consumption, particularly at the 650,000 bpd Dangote refinery.
OPEC+, a group that includes OPEC, Russia, and some other oil-producing partners, is keeping production cuts in place through March because of concerns about weak demand and increasing oil supply from non-member countries.
However, on Monday, the group confirmed its decision to begin increasing production in April as planned.
The increase in Nigeria’s output despite OPEC’s production cuts shows that the largest oil producer in Africa is improving its status in the global oil market.
Nigeria has struggled with fluctuating production due to oil theft, pipeline vandalism, and operational inefficiencies in recent years, making February’s output growth a significant development.
Iran leads OPEC production increase, slight decrease in Saudi
Iran led OPEC’s production increase in February with an 80,000 bpd boost, reaching 3.30 million bpd. This came despite renewed U.S. efforts to curb Iranian oil exports by President Donald Trump, who has vowed to reinstate strict sanctions earlier imposed by his predecessor.
- The survey found that oil production in Saudi Arabia, OPEC’s largest producer, slightly decreased, while Iraq’s output saw a small increase. However, both countries are still producing below their OPEC+ quotas.
- Meanwhile, the United Arab Emirates produced slightly more than its target. While January data provided by OPEC’s secondary sources indicate that the UAE and Iraq are staying close to their assigned quotas, other estimates, including those from the International Energy Agency, suggest their actual production levels may be much higher.
Reuters noted that its “survey aims to track supply to the market and is based on flows data from financial group LSEG, information from other companies that track flows such as Kpler, and information provided by sources at oil companies, OPEC and consultants.”
What you should know
Nairametrics reported that Nigeria slightly exceeded its OPEC quota in January 2025, when it produced an average of 1,539,000 bpd, according to OPEC’s Monthly Oil Market Report.
- The Nigerian government has maintained its commitment to boosting oil output in 2025, from 1.5 million bpd to above 2 million bpd. However, experts say this may be difficult if issues such as oil theft in the Niger Delta and low investment persist.
- The government is looking to explore offshore drilling and the resumption of oil exploration in Ogoniland, among other options, to boost production.
