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.

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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