This development has made the country fall short of its own crude oil production target, per details published on the medium term expenditure framework documents.
Areview of data published by the Nigeria Upstream Petroleum Regulatory Commission has shown that the country has registered a dip in crude oil production on daily and monthly fronts under the President Bola Tinubu-led administration.
This development has made the country fall short of its own crude oil production target, per details published on the medium term expenditure framework documents.
According to the document, Nigeria plans a daily crude oil production of 1.83 million barrels per day for the 2024 fiscal year, a mark it has failed to meet.
As of May, 2024, the country’s daily crude oil production stood at 1.25 million barrels per day, a fall from the 1.28 million barrels recorded in April.
This would mean that the country fell short of crude oil production by 580,000 barrels daily on the average under the Tinubu led administration in May, 2024.
The highest crude oil production recorded between January and May 2024, was in January when 1.4 million barrels were produced, 1.3 million barrels of Crude was produced in February 2024, while 1.2 million barrels was produced daily in March 2024.
The January production remains the highest production since the Tinubu led administration came to be in May, 2023.
In June 2023, 1.2 million barrels were produced daily, July stood at 1 million barrels, August 1.1 million barrels, September 1.3 million barrels, October 1.3 million barrels, November 1.2 million barrels, December 1.3 million barrels.
Nigeria’s daily production is also below the OPEC quota of 1.5 million barrels daily.
On a monthly basis, Nigeria’s crude oil production recorded a dip from the 44 million barrels produced in January, 2024.
The production figure fell from 44 million barrels in January to 38.3 million barrels in February, 38.1 million barrels in March, 38.4 million barrels in April and 38.7 million barrels in May.
This development may also have an impact on revenue available for the federal government to fund its 2024 budget.
According to the MTEF document, Oil revenue is expected to be N3.7 trillion to the federal government projected share of revenues, representing 30% of the N10.8 trillion revenue expected for the government in 2024.
Nigeria has suffered from chronic revenue dip and its heavy reliance on crude oil exports for revenue, makes crude oil production metric an important indicator of its performance.
The country has also suffered from illegal crude oil production, a situation that has also crippled the crude oil production capacity of the country.