Nigeria’s crude oil output falls by 4.37% in March, below OPEC’s quota – Report 

The disclosure was based on data from the April Monthly Oil Market Report (MOMR) by OPEC.

The 64,000-bpd decline widens the gap between Nigeria’s actual production and its OPEC quota of 1.5 million bpd.

The country now produces 6.6% less than its target and remains 32% short of the federal government’s 2025 production goal of 2.06 million bpd.

Persistent issues like underinvestment, aging infrastructure, and widespread oil theft continue to limit production. These structural challenges have made it difficult for the country to sustain stable output levels, despite its large reserves.

The falling production, combined with lower international oil prices, poses serious risks to Nigeria’s fiscal stability. Oil exports are a major revenue source for the country, and any reduction in output directly affects government income.

As revenues decline, so do national reserves, making it harder to fund development projects, infrastructure, and essential public services such as education and healthcare. This could further slow economic growth and increase reliance on borrowing.

While Nigeria cannot control global oil prices, it can improve domestic production. Tackling oil theft, encouraging investment, and upgrading infrastructure are key steps to strengthening output and securing long-term revenue.

Recently, Naijaonpoint reported that Nigeria is facing two major economic threats as Brent crude prices tumble below $60 per barrel, and the sudden drop makes the government’s budget deficit even worse.

Nigeria’s oil production has been consistently underperforming, driven by deep-rooted challenges in the sector. Oil remains a major source of revenue for the country, and these declines are putting additional strain on the economy.