Nigeria Economic Update, Issue 23

According to the Organisation of the Petroleum Exporting Countries’ (OPEC) Monthly Oil Market report for June 2026, Nigeria’s crude oil production increased by 2.7% from 1.489  million barrels per day (bpd) in April 2026 to 1.530 million bpd in  May 2026. The increase reflects a gradual strengthening of the oil sector performance amid ongoing efforts to improve production levels. Despite this development, production remained 25.7 percent below Nigeria’s national target of 2.06 million bpd, indicating the persistent gap between current output levels and medium-term production goals for the sector. The report also indicated that Nigeria’s economic conditions continued to improve, supported by stronger oil sector performance, recovering consumer demand, and increased business activity. While higher oil output is expected to support export earnings and government revenue, sustained performance around OPEC quota levels would further reinforce investor confidence and strengthen Nigeria’s position in the global oil market. To consolidate recent gains, attention should first be directed at improving production efficiency and reducing disruptions across key oil-producing assets. Beyond this, strengthening upstream investment conditions will be necessary to support capacity expansion and close the gap with production targets. In addition, maintaining policy consistency in the energy sector will be important for sustaining investor confidence and ensuring that recent improvements translate into durable output growth and macroeconomic stability.