Second Quarter Oil Production Sees Decline, NBS Reports

Second Quarter Oil Production Sees Decline, NBS Reports....KINDLY READ THE FULL STORY HERE▶

Nigeria’s daily oil production decreased by 160,000 barrels per day (bpd) in the second quarter of 2024, according to a report from the National Bureau of Statistics (NBS). During this period, the average daily production was 1.41 million bpd, down from 1.57 million bpd in the first quarter of 2024, but up from 1.22 million bpd recorded in the same quarter of 2023……CONTINUE READING 

The decline in production has been ongoing since 2020, when output fell from nearly 2 million bpd to 1.6 million bpd. Between 2018 and 2019, production averaged 2 million bpd, but it dropped to 1.81 million bpd in Q2 2020 and further decreased to 1.2 million bpd by Q2 2022. Despite government efforts to boost production, challenges such as oil theft and vandalism have persisted, preventing Nigeria from meeting its 1.5 million bpd quota set by OPEC.

The Federal Government is working to increase production to 2 million bpd to supply local refineries. Minister of State for Petroleum Resources, Heineken Lokpobiri, emphasized the need to return to this level for adequate feedstock.

In addition, the oil sector’s real growth was 10.15% year-on-year in Q2 2024, a significant increase from -13.43% in Q2 2023 and a rise from 5.70% in Q1 2024. However, quarter-on-quarter, the sector experienced a decline of 10.51%. It contributed 5.70% to the total real GDP, up from 5.34% in the previous quarter but down from 6.38% in Q1 2024.

The electricity, gas, steam, and air conditioning supply sector saw a 7.65% year-on-year growth in Q2 2024, down from 41.61% in Q2 2023 but up from 0.41% in Q1 2024. The sector’s contribution to nominal GDP was 1.56%, compared to 1.70% in Q2 2023 and 0.41% in the previous quarter. In real terms, it grew by 5.96%, a decrease from 6.10% in Q2 2023 but an increase from -5.43% in Q1 2024. Quarter-on-quarter, the sector grew by 294.08%, contributing 0.73% to real GDP, up from 0.71% in Q2 2023 and 0.19% in Q1 2024.