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Nigerian economy is set to improve as oil production, besieged by rampant incessant theft and sabotage, hit its highest in more than three years as effort by the government to curb pipeline vandalism and theft is yielding fruit.
According to OPEC data, the country’s production hit 1.476 million barrels per day (bpd) in February, after hitting a decades-low in the second half of 2022, when it dropped below 1 million bpd.
“Since then, the government has pursued a more efficient and aggressive policy for cracking down on theft and pipeline sabotage, hiring private security firms to bolster military efforts to guard facilities,’’ said analysts at Oil Price.Com.
“As of this week, Nigeria is pumping more than it has since December 2020. Nigeria has consistently failed to produce to its quota in the OPEC+ agreement,” said analysts at Oil Price. Com
An insidious attack by oil facilities and theft have hindered the country from meeting its oil production to the extent it constantly was exempted from OPEC+ output cut.
Nigeria’s state-run NNPC energy company said earlier this week that it had destroyed more than 6,000 illegal refineries processing stolen crude, Reuters reported.
An uptick in oil production will add impetus to the economy as it gives the government the leeway to shore up the external reserve and intensify the local currency. It also bolsters allocation to states and local governments.
According to the United Nation’s World Economic Prospect report for 2024, Nigeria’s economic growth is set to extend from 3.0 in 2023, to 3.1 in 2024.
Unhindered by theft and sabotage, Nigeria has the technical allowable capacity to produce about 2.5 million barrels of oil per day,” according to Nigerian oil executives.
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