The global benchmark for crude oil, Brent, has seen a significant increase in price over the past three days, reaching over $84 per barrel on Friday. This surge comes at a time when the Nigerian government has set a new crude oil production target of 2.5 million barrels per day, a goal that could greatly boost the country’s foreign exchange earnings if achieved.
According to data from the Nigeria Upstream Petroleum Regulatory Commission, Nigeria’s oil output rose to 1.64 million barrels per day in January 2024, up from 1.55 million barrels per day in December 2023. This increase in production has contributed to the rise in global oil prices, with Brent reaching $84.14 per barrel on Friday.
In addition to Brent, other oil grades such as WTI crude and Murban crude have also seen price appreciation, trading at $80.74 and $84.07 respectively on Friday evening. This upward trend in oil prices coincides with Nigeria’s announcement of a higher production target.
The Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission, Gbenga Komolafe, highlighted the significant oil and gas reserves that Nigeria holds in Africa. He emphasized the country’s potential for sustainable development and prosperity, pointing out that Nigeria’s current oil production falls short of its technical potential.
Komolafe stressed the importance of closing the gap between actual production and technical potential to attract investment opportunities and unlock additional revenue streams for Nigeria. He also noted Nigeria’s potential in clean energy technologies and the country’s young population as economic assets.
Despite pressure from Western nations to reduce fossil fuel exploration, the Nigerian government remains committed to developing its oil and gas sector. Minister of State for Petroleum Resources, Heineken Lokpobiri, emphasized the need for stakeholders to support Nigeria’s efforts in harnessing the benefits of its natural resources for the betterment of its people.
As global oil prices continue to rise and Nigeria aims to increase its oil production, the country’s energy sector presents significant opportunities for growth and development, both domestically and internationally.
