Nigeria regains Africa’s top crude oil producer spot in May 2023 — OPEC report

Nigeria has regained its position as Africa’s top crude oil producer for May 2023, according to the latest report published by the Organization of Petroleum Exporting Countries (OPEC), that also attributes the slow growth of the country’s economy by 2.4% year-on-year in the first quarter of 2023 to certain factors including a decline in crude oil output.

The OPEC Monthly Market Report (MOMR) confirmed that Nigeria produced 1.184 million barrels of crude oil per day (bpd) in its report, followed by Libya (1.158 million b/d), Angola (1.111 million bpd), and Algeria (962,000 bpd). In April 2023, Nigeria experienced its first decline in crude oil production, with OPEC reporting a daily output of 999,000 barrels. In addition to declining oil production, Nigeria’s economy is facing challenges such as high inflation, import restrictions, and subdued business activity and consumer spending. The OPEC report also said that Nigeria’s economy expanded by 2.4% year-on-year in the first quarter of 2023, whereby the slow growth is due various factors, including a decline in crude oil output.

With a production capacity of 1.2 million bpd, Nigeria wobbled to emerge the top crude oil producer earlier in March 2023, despite it’s the country’s lowest production recorded so far this year, according to data from the Nigerian Upstream Regulatory Commission (NUPRC). Nigeria has not been able to reach its OPEC quota of 1.8 million bpd or even its 2023 budget benchmark of 1.6 million bpd due to lack of investments, economic, political, security risks, and crude production sabotage.

Notwithstanding the challenges, Nigeria still managed to emerge as Africa’s top crude oil producer for March 2023, though it recorded lower production during the month under review.