Nigeria’s crude oil production has seen a significant drop for the second consecutive month, hitting 1.231 million barrels per day (mbpd) in March, according to the latest report from the Organisation of Petroleum Exporting Countries (OPEC).
This marks a decline from the 1.322 mbpd produced in February, signifying a plunge of 91 mbpd.
OPEC’s Monthly Oil Market Report for April 2024 revealed that Nigeria’s oil output has been on a downward trend since the beginning of the year. Despite an average production of 1.327 mbpd in the first quarter of 2024, higher than the fourth quarter of 2023, the country’s oil sector continues to face challenges.
The decline in production is attributed to various factors, including oil theft and pipeline vandalism, which have plagued Nigeria’s oil industry.
The Nigerian National Petroleum Company Limited reported 155 incidents of oil theft in just one week, along with the discovery of illegal pipeline connections and refineries in the Niger Delta region.
These incidents highlight the ongoing struggle against crude oil theft, which has resulted in significant economic losses for Nigeria.
According to government data presented at a recent conference, over N4.3 trillion worth of crude oil was stolen in 7,143 pipeline vandalism cases over the past five years.
The situation underscores the urgent need for stronger regulations, technology, and security measures to safeguard Nigeria’s oil infrastructure and boost production.
Despite efforts by the national oil company to combat theft and vandalism, the challenges persist, threatening the country’s oil revenue and investment prospects.
