The Central Bank of Nigeria (CBN) has raised concerns about the country’s ability to meet its goal of producing two million barrels of oil per day (bpd) by the end of 2024. The bank cited ageing pipelines and operational issues as major reasons for a significant drop in oil revenue in the third quarter of the year.
According to the CBN’s latest economic report, Nigeria’s oil revenue fell by 24.72% to ₦1.30 trillion, compared to ₦1.73 trillion in the second quarter. This figure was also 75.39% below the target for the quarter, largely due to pipeline breakdowns and frequent shutdowns.
The report highlighted that while oil production rose slightly to 1.33 million bpd from 1.27 million bpd in the previous quarter, problems such as oil theft, vandalism, and poor infrastructure continue to hurt revenue and production capacity.
The Nigerian National Petroleum Company (NNPC) Limited, however, remains optimistic about reaching the two million bpd target. Olufemi Soneye, the Chief Corporate Communications Officer of NNPC, said production has already increased to 1.8 million bpd. He added that the company’s new Production Monitoring Command Centre (PMCC) is expected to help achieve the target.
The CBN report further stated:
“Oil revenue dropped significantly due to lower earnings from petroleum profit tax and royalties. Shut-ins caused by ageing pipelines and installations remain a major challenge.”
The ageing infrastructure also limits Nigeria’s ability to meet its OPEC production quota, raising further doubts about achieving the two million bpd goal without urgent intervention.