NIGPOST Exclusive
Nigeria’s crude oil revenue surged to approximately ₦50.88 trillion in 2024, according to data obtained from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
This impressive figure was derived from the production of 408,680,457 barrels of crude oil, with an average price of $80.53 per barrel.
Crude Oil Production and Revenue Breakdown
A report released by the Statista Research Department on January 9, 2025, revealed that multiplying the total production by the average price resulted in $32.91 billion.
At an exchange rate of ₦1,546 per dollar, this equates to ₦50.88 trillion.
Including condensates, Nigeria’s total oil production for 2024 was 566.79 million barrels. While the country planned to produce 649.7 million barrels, it fell short of its target due to various challenges.
However, favorable fluctuations in crude oil prices and the depreciation of the naira contributed to higher-than-expected revenue.
Market Dynamics and Price Fluctuations
In 2024, global crude oil prices displayed significant volatility. For instance, Brent crude prices rose from $82.44 on March 11 to $86.87 following geopolitical tensions, including attacks on Russian refineries.
Conversely, prices fell below $70 per barrel in September, marking the first decline of this magnitude since December 2021.
Oil Production Challenges
The NUPRC reported an average daily crude oil production of 1.484 million barrels in December, slightly below the OPEC quota for Nigeria. Throughout 2024, production levels fluctuated, reaching a peak of 1.69 million barrels per day, inclusive of condensates, but failing to meet the 1.78mbpd target projected in the national budget.
Despite these challenges, the Nigerian National Petroleum Company Limited (NNPCL) and its partners generated substantial revenue, shared among the federal, state, and local governments, as well as international oil companies and indigenous producers.
Optimism for 2025
Mele Kyari, the NNPCL Group Chief Executive Officer, expressed optimism about meeting production and revenue targets for 2025, citing ongoing efforts to boost crude production and stabilize market dynamics.
Nigeria’s crude oil sector remains a cornerstone of its economy, with potential for growth despite challenges. Stakeholders are urged to prioritize sustainable practices and strategic investments to maximize the sector’s contributions to national development.
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