Nigeria: Nigerian oil production ticks down in January
Latest reading: Brent crude oil prices averaged USD 64.59 per barrel in January, up 4.6% from December. On 30 January, the commodity traded at USD 70.73 per barrel, up 16.2% from 31 December.
Turning to production, Nigerian oil output ticked down to 1.48 million barrels per day (mbpd) in January from December’s 1.50 mbpd. Consequently, output fell short of Nigeria’s OPEC+ quota of 1.50 mbpd.
In recent oil news, Nigeria’s oil regulator announced it had reduced entry costs and introduced independent oversight for transparency in its latest licensing round in a bid to attract investment and boost production. Moreover, Nigeria is in talks with a Chinese firm to manage its refineries, which have remained largely idle despite billions spent on refurbishments.
Outlook: This year, Nigerian oil production should ease from 2025’s five-year high and come in just below its OPEC+ quota, as a fragile security situation and an uncertain domestic regulatory environment constrain production. That said, output is then seen rising through 2028. Instability in the oil-producing Niger Delta region remains a key downside risk.