In a strategic move to maintain global oil market stability, the Organization of the Petroleum Exporting Countries (OPEC) has extended Nigeria's crude oil production quota of 1.5 million barrels per day (bpd) through the end of 2025. This decision, reaffirmed during OPEC's 38th ministerial meeting, underscores the organization's commitment to balancing oil supply and demand dynamics.
Nigeria's adherence to the 1.5 million bpd quota marks a significant achievement, as the country had previously struggled to meet this target. According to OPEC's monthly oil market report, Nigeria's crude oil production reached an average of 1.53 million bpd in January 2025, surpassing the set quota for the first time since its implementation in 2024.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, emphasized that the extended quota aligns with Nigeria's broader energy objectives. He noted that the country's 2025 production target of 2.06 million bpd, as outlined in the draft Appropriation Bill, includes condensate oil production, which is not subject to OPEC's quota restrictions.
The extension of Nigeria's production quota is part of OPEC's broader strategy to ensure sustained stability in the global oil market. The organization has also extended overall crude oil production levels for OPEC and non-OPEC participating countries, as agreed in previous ministerial meetings.
Nigeria's improved production capacity is further bolstered by the anticipated full operation of the Dangote Refinery, which is expected to process 650,000 barrels of crude daily. Once fully operational, the refinery is projected to stabilize petroleum product supply and potentially lower fuel prices in the country.
As Nigeria continues to navigate the complexities of global oil production dynamics, the extension of its OPEC quota through 2025 represents a significant milestone. It reflects both the country's commitment to international agreements and its ongoing efforts to enhance domestic oil production capabilities.
