The Nigerian government has attributed the crude oil production shortfall experienced in the first quarter of the year to issues with the Trans Niger Pipeline and maintenance activities conducted by some oil companies operating in the country. Nneamaka Okafor, Special Adviser on Media and Communication to the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made this statement on Friday.
Over the years, crude theft, pipeline vandalism, and their negative impacts on the country’s economy have been a significant concern for the Nigerian government. In February, the Organisation of Petroleum Exporting Countries (OPEC) reported that Nigeria’s crude oil production dropped to 1.149 million barrels per day in January, down from 1.422 million barrels per day recorded in December 2023. In February, according to OPEC’s direct communication data, Nigeria’s crude oil production further decreased to 1.322 million barrels per day from 1.427 million recorded in January.
Minister Lokpobiri assured that the reported production shortfall was primarily due to issues encountered on the Trans Niger Pipeline and maintenance activities carried out by some oil companies in the country. He added that measures are being taken to address the situation, aiming to restore production to previous levels and increase it further. The minister expects Nigeria’s oil production, including condensate, which was approximately 1.7 million barrels per day before these developments, to be restored soon.
The Ministry of Petroleum Resources is also actively engaged in policy evolution to maximize the utilization of all available wells in Nigeria, enabling the country to ramp up production and generate vital revenue to stabilize the nation’s foreign exchange reserves. This increased revenue will help the government fulfill its commitments in providing essential infrastructure, as outlined in the 2024 budget. Lokpobiri urged Nigerians to remain committed to ensuring the sustainability and growth of Nigeria’s oil sector, which plays a crucial role in driving the nation’s economy.
