The Federal Government is poised to earn approximately N6.99 trillion monthly from the oil sector, following a significant increase in crude oil production to 1.8 million barrels per day (bpd) by the Nigerian National Petroleum Company Limited (NNPC) and industry stakeholders.
The current global benchmark for Brent crude averages around $81 per barrel for 2024. This is marginally lower than the $101 per barrel average in 2022 but remains relatively consistent with the 2023 figure of $82 per barrel.
With a production level of 1.8 million bpd and an average crude price of $81 per barrel, the nation is expected to generate approximately $145.8 million daily. Over 30 days, this would translate to $4.37 billion, amounting to an estimated N6.99 trillion monthly at an exchange rate of N1,600/$.
NNPC’s Group Chief Executive Officer, Mele Kyari, announced the production milestone at a meeting held at NNPC headquarters in Abuja. The session, chaired by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, saw the presence of top NNPC executives, including Board Chairman Chief Pius Akinyelure, Chief Financial Officer Mr. Adedapo Segun, and other senior officials.
Kyari highlighted during a recent interactive session with the Senate Committee on Finance that the crude oil production and price projections for the 2024 Budget are both feasible and on track for realization.
The company disclosed an increase in gas production as well, with output now at 7.4 billion standard cubic feet (scf) compared to the earlier level of 6.1 billion scf. This increase supports key gas infrastructure projects, including the AKK pipeline.
Lawal Musa, Chief Production War Room Officer, emphasized the collaborative efforts among NNPC leadership, stakeholders, and security agencies in achieving the milestone. He said, “Today, the entire industry is proud of crossing the 1.8 million bpd threshold. Concurrently, we have surpassed the 7.4 billion scf gas mark, a monumental achievement.”
Musa expressed optimism about increasing crude production to 2 million bpd by year-end, attributing progress to sustained collaboration, security improvements, and effective market delivery.
Minister Lokpobiri lauded NNPC’s accomplishment, describing the milestone as a reflection of its capacity to achieve and surpass production targets. “We are on track to deliver two million barrels per day by December. This goal is within reach, and I commend the entire team for their dedication,” he stated.
NNPC Board Chairman, Chief Pius Akinyelure, called for sustained efforts, emphasizing the importance of surpassing current achievements to meet shareholder expectations.
Dr. Paul Bebenimibo, spokesperson for Tantita Security Services Nigeria Limited, one of NNPC’s private security partners, expressed confidence in reaching the 2 million bpd mark. He attributed the progress to enhanced measures, technology adoption, and collaboration with security agencies. “The Niger Delta is now more peaceful, enabling us to achieve this milestone with the support of NNPC, security forces, and Tantita. We are committed to hitting the 2mbpd target as directed by the President,” Bebenimibo remarked.
