Nigeria, known for its significant crude oil production, experienced a decline in output for the second consecutive month in February 2024. According to the latest report from the Organization of Petroleum Exporting Countries (OPEC), Nigeria produced 1.32 million barrels per day during the month, down from 1.42 million barrels per day in the previous month.

The data provided by Nigeria directly to OPEC authorities indicated the lower production figure, while secondary sources reported a daily production of 1.47 million barrels, showing a slight increase of 47,000 barrels per day. Despite the drop in production, Nigeria maintained its position as Africa’s largest oil producer among OPEC member countries on the continent.

In comparison, Libya produced 1.17 million barrels per day in February, making it Nigeria’s closest rival in oil production in Africa. Algeria followed with a daily production of 906,000 barrels, as per OPEC figures.

Global oil prices also saw an increase during the month, with Brent crude rising by 3.2% to an average of approximately $81.72 per barrel. The NYMEX WTI futures contract also saw a rise of $2.75, reaching an average of $76.61 per barrel.

Nigeria’s daily crude oil production target is estimated at 1.78 million barrels, while OPEC has set a production limit of 1.5 million barrels per day for the country. The impact of the production decline could affect the implementation of Nigeria’s 2024 budget, valued at N28.7 trillion, and the country’s foreign exchange market, where the Naira traded at N1603.38 per US dollar on Tuesday.

Despite these challenges, Nigeria remains a key player in the global oil market, with its production levels closely monitored by OPEC and other stakeholders. The fluctuations in production and oil prices highlight the country’s reliance on its oil industry and the need for sustainable strategies to navigate the ever-changing market dynamics.