The Nigerian government is actively calling on oil companies operating within the country to ramp up production and meet the nation’s long-standing OPEC+ quota target. Despite being Africa’s largest oil producer, Nigeria continues to fall short of its production benchmark due to persistent operational setbacks.
Oil Output Still Lags Behind OPEC Quota
In the first quarter of 2025, Nigeria’s crude oil output averaged just 1.4 million barrels per day (bpd), significantly below its assigned OPEC quota of 1.8 million bpd. Ekperikpe Ekpo, Minister of State for Gas, revealed the figures during a local energy conference, stressing the urgent need for increased collaboration among operators.
Regulators Push for Resource Optimisation
Meanwhile, Gbenga Komolafe, chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), emphasised that Nigeria’s production growth relies heavily on optimising existing resources and aggressively exploring untapped reserves.
Vandalism and Oil Theft Hamper Progress
For years, oil theft and pipeline vandalism have plagued the upstream sector, forcing international oil majors to reconsider their positions in Nigeria. These challenges frequently trigger force majeure at major crude export terminals, disrupting output and revenues.
Government Steps Up Anti-Theft Efforts
In response, Nigerian authorities have stepped up enforcement against oil theft and pipeline sabotage. Their recent actions reflect a broader national strategy to attract investment and stabilise production in the oil and gas sector.
ExxonMobil Commits $1.5 Billion to Deepwater Projects
Earlier this month, NUPRC disclosed that U.S. energy giant ExxonMobil plans to invest up to $1.5 billion in deepwater exploration and development off Nigeria’s coast. This move could help reverse the country’s declining output trajectory and strengthen its position within OPEC.
OPEC+ Eyes Further Output Hikes
At the same time, reports indicate that OPEC+ member nations are considering a significant production increase for July. Sources speaking to Bloomberg suggested that a 411,000-bpd hike matching increases announced for May and June is under active discussion. These boosts would triple the group’s earlier monthly increment, signalling a shift toward easing global supply constraints.