The Organization of Petroleum Exporting Countries (OPEC) and its allies (OPEC+) have increased Nigeria’s oil production quota from 1.826 million barrels per day (mbpd) in August 2022 to 1.830 mbpd. This new quota would take effect from September 2022.
What’s more?
The new production quota released by OPEC ranks Nigeria as the African country with the highest oil production quota of 1.830 mbpd, while North African country Sudan has the lowest quota with 75,000 barrels per day. OPEC took the decision to increase its oil production quota to increase stability in the global oil market.
Why it matters
Market analysts are doubtful of Nigeria’s capacity to meet the new quota as the country currently produces 1.4 mbpd, including condensates. The Nigerian National Petroleum Corporation (NNPC) has over the years blamed the increased challenges of insecurity pipeline vandalization, oil theft and illegal refining in the Niger Delta region of the country as the major setbacks facing the oil sector.