In 2024, Nigeria recorded a remarkable revenue of N50.88 trillion from crude oil production, according to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This substantial income highlights the critical role of the oil sector in the country’s economy despite fluctuating global oil prices and production challenges.
The NUPRC reported that Nigeria produced a total of 408.68 million barrels of crude oil last year. With the global average price of crude oil standing at $80.53 per barrel, the country earned approximately $32.91 billion from crude oil sales. Using an exchange rate of N1,546 to the dollar, this equates to the N50.88 trillion revenue figure. Including condensates, total oil production reached 566.79 million barrels in 2024.
Nigeria had initially targeted a production of 649.7 million barrels for the year, based on a projected daily average output of 1.78 million barrels. However, actual production fell short, averaging around 1.48 million barrels per day in December. Despite missing the production target, higher-than-anticipated crude oil prices and the depreciation of the naira boosted the naira-equivalent earnings.
Crude oil prices experienced significant volatility throughout 2024. Prices peaked in March following disruptions in the global oil supply chain due to geopolitical tensions, with Brent crude reaching $86.87 per barrel. However, by September, prices dropped sharply, with Brent crude falling below $70 per barrel for the first time since 2021. By December, the average price of Brent crude stabilized at $74 per barrel.
The NUPRC data revealed that Nigeria failed to meet its production quota set by the Organization of the Petroleum Exporting Countries (OPEC). The country’s production ranged between 1.23 million and 1.48 million barrels per day, falling short of its OPEC allocation of 1.5 million barrels daily. However, the inclusion of condensates pushed total production figures closer to the target.
Despite these challenges, officials remain optimistic. Nigerian National Petroleum Company Limited (NNPCL) Chief Executive Mele Kyari noted that the country’s projected benchmarks were achievable. He cited improvements in security and investments in infrastructure as key factors for future growth. The Minister of State for Petroleum Resources, Heineken Lokpobiri, also expressed confidence in reaching higher production levels in the coming years.
