Nigeria Crude Oil production hits 20-month high of 1.57mbpd in September

From the the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria’s average oil production hit a 20-month high in September reaching 1.57mbpd.

Report indicated that crude oil output (including condensate) rose by 11.1% from 1.43mbpd in August and surged by 25.6% from the year-low of 1.23mbpd in April and figures imply that the country pumped a total of 47.2 million barrels (including condensates) in September, the highest on record since January 2022 (51.9mb)

The Crude Oil output from

Nigeria has been low in recent years and the country in recent time recorded its lowest oil production volume of 0.94mbpd in September 2022. Meanwhile low production has been attributed to massive crude oil theft in Nigeria’s oil-rich Niger Delta, crude oil terminal maintenance, shutdowns, and reduced investments in the upstream oil and gas sector.

Also, looking into the data showed crude oil production output rallied for 7 months from September 2022, but production began to decline again in February 2023.

Nigeria has struggled with significant FX shortages causing the naira to fall to a record low against the dollar.

The naira has continued to depreciate due to an acute shortage of supply amidst a growing demand and the country’s low oil production is a major reason behind the shortage of foreign exchange.

Crude oil receipts are a major source of FX for the country and a significant increase in production will increase FX supply and ameliorate the liquidity issues in the FX market.