Nigeria's Crude Oil Output Surges to 1.67m bpd - Boosting Economic Growth
1 min Read September 4, 2023 at 1:22 PM UTC
Highlights
- Total crude oil production, including condensates, in Nigeria rose to a notable 1.67 million barrels per day (bpd) as of August 30, the highest level in at least a year.
- That’s according to Mele Kyari, the Group CEO of the Nigerian National Petroleum Company (NNPC), the state-owned company in charge of managing the oil industry.
- As of April, Nigeria produced less than a million barrels, losing its place as Africa’s largest oil producer to Angola. But the oil-dependent economy has since seen a turnaround, regaining its top spot in May with 1.184 million bpd produced before ramping up further to current levels.
Source: BusinessDay
Our Takeaway
The oil sector is paramount to Nigeria’s economy, serving as its lifeblood for decades. This industry contributes significantly to the country’s GDP, providing approximately 80% of the Federal Government’s revenue and 90% of Nigeria’s export earnings. Nigeria heavily relies on oil exports, making it vital for economic stability. As such, rising oil production levels are a boon—in the form of higher revenue and fostering economic growth—for Africa’s biggest economy, which is also home to the continent’s largest population. However, its over-dependence on the commodity is a cause for concern given the often volatile nature of global commodities like oil.
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