Nigeria’s Oil Production Hits 1.8 Million Barrels per Day, Federal Revenue Set to Reach N6.99 Trillion Monthly
By DAYO ADESULU
Federal Government to Earn N6.99 Trillion Monthly as Oil Output Reaches New High
Nigeria’s Federal Government stands to gain approximately N6.99 trillion monthly from increased oil production as the Nigerian National Petroleum Company Limited (NNPC) pushes output to 1.8 million barrels per day (mbpd). This production level, achieved through close collaboration between NNPC and industry stakeholders, has significant economic implications for the nation. With Brent crude oil averaging $81 per barrel in 2024, Nigeria’s daily oil revenue is projected to be around $145.8 million, translating to $4.37 billion monthly. At the official exchange rate of N1,600 per dollar, this amount converts to an impressive N6.99 trillion in monthly earnings. This revenue boost is expected to provide substantial support for Nigeria’s 2024 national budget.
NNPC Announces Production Increase to 1.8mbpd Amid Enhanced Security and Stakeholder Collaboration
NNPC recently announced a major milestone in its oil production efforts, reaching 1.8 mbpd. The achievement was unveiled at a meeting in Abuja led by NNPC Group Chief Executive Officer (GCEO) Mele Kyari and attended by key industry stakeholders, including representatives from both federal and private security agencies. The rise in production, attributed to coordinated efforts between NNPC, security partners, and government bodies, follows recent security measures in oil-producing regions like the Niger Delta. Kyari expressed optimism about meeting the government’s production goals, stating that this increase reflects a collective commitment to national economic priorities. “With the support of our partners, including local communities and security agencies, we are now well-positioned to meet our targets and drive national growth,” Kyari said.
Gas Production Up to 7.4 Billion Cubic Feet, Boosting National Infrastructure and Energy Supply
Alongside rising oil output, NNPC announced that gas production has reached 7.4 billion standard cubic feet, marking an increase from 6.1 billion earlier in the year. This boost in gas supply is particularly significant for Nigeria’s infrastructure and energy landscape, supporting key projects like the Ajaokuta-Kaduna-Kano (AKK) pipeline. Increased gas production strengthens Nigeria’s ability to meet growing domestic energy demands and fuels critical industrial and commercial sectors. At the Abuja meeting, NNPC leaders highlighted this growth as part of their long-term strategy for enhancing Nigeria’s energy resources. “Increasing our gas production is essential for sustaining power and infrastructure projects nationwide,” said NNPC’s Chief Production War Room Officer, Lawal Musa.
Stakeholder Collaboration Boosts Nigeria’s Path to 2 Million Barrels Daily Target by Year-End
The coordinated efforts of NNPC and industry stakeholders have moved Nigeria closer to reaching a year-end production target of 2 mbpd. Since establishing a “production war room” in June, NNPC has steadily increased oil output from 1.43 mbpd to 1.7 mbpd by August, now reaching 1.8 mbpd. Key to this achievement is the active collaboration between NNPC, local communities, private security firms like Tantita Security Services, and the federal government. Tantita’s spokesperson, Dr. Paul Bebenimibo, explained that new technologies have been deployed to protect oil facilities and prevent production disruptions. “Our efforts in the Niger Delta have ensured stability and paved the way for higher production,” Bebenimibo said, reinforcing the likelihood of meeting the ambitious 2 mbpd target set by Nigeria’s president.
Minister of Petroleum Lauds NNPC’s Record Output, Encourages Continued Growth
Minister of State for Petroleum Resources, Heineken Lokpobiri, celebrated the recent increase in oil and gas production during an NNPC-led industry meeting in Abuja. He commended NNPC’s achievement in raising oil production to 1.8 mbpd and gas output to 7.4 billion cubic feet, calling it a “remarkable feat” that demonstrates the company’s potential to surpass the federal government’s target of 2 mbpd by December. “Today, we see a united industry, fully committed to delivering value to Nigeria’s economy,” Lokpobiri said. The Minister encouraged NNPC’s board and management to maintain the momentum, expressing confidence that Nigeria will soon reach its target.
NNPC Board Chairman Calls 1.8 mbpd Milestone the Start of Greater Accomplishments
Chief Pius Akinyelure, Chairman of the NNPC Board, expressed optimism following the recent rise in oil production to 1.8 mbpd, referring to it as “just the beginning.” At the Abuja meeting, he commended the NNPC team’s dedication and urged them to build on the achievement to meet the government’s 2 mbpd target by year-end. Emphasizing the company’s focus on long-term success, Akinyelure encouraged management and staff not to relent in their efforts, noting that exceeding shareholder expectations would secure NNPC’s position as a leading contributor to Nigeria’s economy. “We aim to continue this upward trajectory and reach new heights in energy production,” he stated.
