Nigeria’s crude oil production was on the upward swing in February, with the country pumping about 70,000 barrels per day above its Organisation of Petroleum Exporting Countries (OPEC) quota, a Reuters survey indicated on Wednesday.
It also saw OPEC oil output rise last month, as Iranian exports held strong, despite renewed US attempts to curb the flows, and Nigeria boosted output above its target of 1.5 million bpd within the wider OPEC+ group.
Nigeria’s growing oil production means boosted revenues and a stronger foothold in the global energy market as the government’s coffers swell, offering opportunities for investment in public services, industrialisation, and the much-needed diversification of the economy.
The increased output also strengthened Nigeria’s geopolitical influence, positioning it as a formidable player in OPEC and a crucial supplier to energy-hungry nations. However, it also exposes the country to the volatility of oil prices, where global market fluctuations can turn boom into bust in a heartbeat.
Thus, the implications of Nigeria’s growing oil production are manifold—offering promise that the country is able to produce its projected 2.06 million bpd in 2025 and ultimately fund its almost N55 trillion budget this year.
In all, OPEC pumped 26.74 million barrels per day last month, up 170,000 bpd from January’s revised total, the survey showed on Wednesday, with Iran and Nigeria posting the largest gains.
OPEC+, which includes OPEC plus Russia and other allies, is keeping production cuts in place through March due to expectations of limited demand and rising output outside the group, the Reuters report stated.
But on Monday, it decided to stick with its plan to start raising output in April. OPEC’s biggest rise, of 80,000 bpd, came from Iran, with output of 3.30 million bpd. This matched September’s figure which was the highest since 2018.
Iranian oil exports recovered during former US President Joe Biden’s term, despite US sanctions. Under his successor Donald Trump the US is renewing efforts to cut them to zero.
The second-largest gain in output came from Nigeria where exports rose and domestic usage increased at the Dangote refinery. Nigeria is pumping 70,000 bpd above its OPEC+ target, according to the survey, the highest in the group.
Output in OPEC’s two biggest producers, Saudi Arabia and Iraq, edged lower and higher respectively, the survey found. Both nations are pumping less than their OPEC+ targets.
Output in the United Arab Emirates was slightly above its target. While the survey and January data provided by OPEC’s secondary sources show the UAE and Iraq are pumping close to the quotas, other estimates, such as those of the International Energy Agency (IEA) suggest they are pumping significantly more.
There were no significant declines in output last month, the survey found. The Reuters 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.
