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Nigeria Oil Output Hits 11-Month Peak

 

Nigeria’s oil and condensate production climbed to its highest level in nearly a year in May, surpassing the production ceiling allocated to the country by the Organisation of the Petroleum Exporting Countries (OPEC) and raising expectations of stronger government revenues and increased foreign exchange earnings.

Latest figures released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that crude oil production averaged 1.53 million barrels per day (bpd) during the month.

When combined with condensate production of 170,446 bpd, Nigeria’s total hydrocarbon output reached approximately 1.70 million bpd, reinforcing the country’s position as Africa’s leading oil producer.

The regulator noted that the crude oil volume achieved in May amounted to 102 per cent of Nigeria’s OPEC production quota of 1.5 million bpd, marking a significant milestone for the industry.

The development is expected to provide a major boost to the nation’s economy.

As petroleum exports remain Nigeria’s primary source of foreign exchange and a key contributor to public finances, increased production could translate into higher export earnings and improved fiscal performance, particularly if global oil prices remain favourable.

Industry observers also viewed the achievement as evidence of a gradual recovery in the sector after years of setbacks linked to crude theft, pipeline vandalism and inadequate investment.

Sustaining the current momentum, however, remained critical.

The rise in local output could equally ease pressure on domestic refiners, including the Dangote Refinery, by reducing reliance on imported crude supplies.

According to NUPRC data, overall production performance remained strong throughout May.

Combined crude oil and condensate output fluctuated between a low of 1.51 million bpd and a high of 1.86 million bpd during the reporting period.

The May performance represents Nigeria’s highest total production level since July 2025, when output reached 1.712 million bpd.

When condensates are excluded, the 1.53 million bpd crude oil production recorded in May stands as the country’s strongest performance since January 2025, when output reached 1.538 million bpd.

This effectively made the latest figure the highest crude oil production level in 15 months.

Month-on-month analysis also showed continued improvement. Crude production increased by 2.77 per cent from the 1.48 million bpd recorded in April.

The broader trend has remained encouraging over the past several months. Combined oil and condensate production rose from 1.48 million bpd in February to 1.54 million bpd in March, advanced further to 1.66 million bpd in April and eventually reached 1.70 million bpd in May, reflecting a sustained upward trajectory in Nigeria’s hydrocarbon sector.

Among the major production streams, Bonny Terminal emerged as the leading contributor with 293,870 bpd.

It was closely followed by Forcados Terminal, which delivered 289,900 bpd. Qua Iboe ranked third with 173,360 bpd, while Escravos Oil Terminal contributed 135,470 bpd.

Odudu, also known as Amenam Blend, completed the top five producing streams with 63,250 bpd during the month.

The NUPRC attributed the production growth to continued operational stability across the sector.

According to the commission, there were no major disruptions arising from pipeline failures or facility shutdowns during the reporting period.

The agency further disclosed that all planned turnaround maintenance programmes had been successfully completed, helping operators improve reliability and production efficiency.

Meanwhile, the Nigerian National Petroleum Company Limited (NNPC) and security agencies have intensified efforts to tackle the growing challenge of pipeline vandalism and crude theft along the country’s northern pipeline corridor.

Operating under the Industry Wide Security Architecture (IWSA), the Nigerian Pipelines and Storage Company (NPSC), working alongside the Office of the National Security Adviser (ONSA) Special Prosecution Team, the Federal Capital Territory Police Command, the Nigerian Army and other security stakeholders, recently conducted an inspection of a vandalised crude oil pipeline in Pai Community, Kwali Area Council of the FCT.

According to a statement issued by NNPC spokesperson Andy Odeh, the inspection was aimed at evaluating the extent of damage to critical national infrastructure, supporting ongoing investigations and strengthening collaboration among agencies involved in protecting strategic energy assets.

The visit followed the arrest of three suspected vandals in the Piri and Pai communities through a coordinated operation involving the ONSA Special Prosecution Team, the FCT Police Command and NNPC’s security architecture.

NNPC disclosed that NPSC, one of its subsidiaries, manages more than 5,000 kilometres of crude oil and petroleum products pipelines nationwide.

The company noted that incidents of pipeline theft have risen steadily since 2024.

According to the national oil company, organised criminal groups often disguise themselves as members of an “NNPC/Federal Government Taskforce for Recovery of Abandoned Pipelines” and work with local collaborators to excavate and steal pipeline infrastructure.

“In 2025, a total of 19 cases were reported with about 9km pipeline section stolen along Enugu-Makurdi-Yola and between Piri & Izom along Warri – Kaduna pipeline corridors.

”So far in 2026, five cases were reported at Piri-Kwali & Gwagwalada, along Warri-Kaduna crude oil pipeline segment and at Badanga, along Jos-Gombe pipeline corridor,” the statement said.

Speaking during the inspection, NNPC Group Chief Executive Officer, Bayo Ojulari, represented by the company’s Chief Interface Officer, Dahiru Sani-Gwarzo, described the arrests as a significant breakthrough in the wider campaign against oil infrastructure sabotage.

“The industry-wide security architecture has been actively pursuing criminal elements involved in the sabotage of our energy infrastructure.

”Those apprehended are only a small part of a larger network. Our focus remains on identifying and bringing to justice the masterminds and sponsors behind these criminal activities.

“Beyond the significant economic losses they cause, such acts undermine national development, energy security and investor confidence.

”We will continue to work closely with our security partners to ensure these crimes are decisively addressed,” he said.

FCT Commissioner of Police, Ahmed Sanusi, said the operation highlighted the determination of security agencies to protect national assets and dismantle criminal networks involved in pipeline vandalism.

He revealed that the suspects were arrested after extensive intelligence gathering, surveillance and targeted security operations launched following reports of interference with sections of the pipeline.

According to him, investigations have already uncovered useful leads concerning those financing the criminal activities as well as individuals receiving stolen materials. He assured that everyone linked to the crime would face prosecution in line with the law.

Also speaking, Director of Energy Security at ONSA, Goodluck Ebelo, urged Nigerians to support security agencies by providing timely and credible intelligence capable of preventing vandalism and other forms of economic sabotage.

He stressed that public cooperation remains essential to safeguarding national assets and enhancing the country’s energy security framework.

Representing the Nigerian Army, Lt. Col. J.O. Ajongbo reaffirmed the military’s commitment to collaborating with NNPC and other security institutions to protect oil and gas infrastructure nationwide.

Deputy Chairman of the House Committee on Petroleum Resources (Upstream), Hon. Sesi Whingan, equally pledged legislative backing for stronger measures aimed at deterring pipeline vandalism through enhanced legal and regulatory frameworks.

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