Nigeria's gas production rose by 2.9% in November 2024 to 2,292,951 million standard cubic feet (MSCF) from 2,292,471 MSCF in October, according to data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Over the first eleven months of 2024, the annual increase remains marginal at 0.02%, reflecting a slow but stable growth sector.
Over the period under review, gas consumed locally amounted to 606,658 MSCF, an increase of 1.6% compared with 596,861 MSCF in 2023. At the same time, gas exports rose by 6.9% to 829,156 MSCF from 775,547 MSCF the previous year, making a significant contribution to the country's foreign exchange earnings.
Despite progress in gas production, the oil sector remains predominant. In November 2024, oil production, including condensates, rose by 13.3% year-on-year to 1.7 million barrels per day (bpd), compared with 1.5 million bpd in 2023. On a month-on-month basis, this production increased by 10%, illustrating the continued strength of this industry.
Dr Muda Yusuf, Director General of the Centre for the Promotion of Private Enterprise (CPPE), highlighted the unbalanced economic contribution between the sectors. In the third quarter of 2024, the non-oil sector accounted for 94.43% of GDP, compared with just 5.57% for the oil sector. However, oil still contributes around 90% of foreign exchange earnings, underlining a persistent structural dependence.
"Productivity and competitiveness problems in the non-oil sector are amplified by structural constraints, limited financing, regulatory bottlenecks and macroeconomic headwinds. Addressing these challenges is crucial to stabilising the economy", said Dr Yusuf.
To meet these challenges, strategic measures are recommended. Infrastructure improvements, regulatory reforms and targeted interventions are essential to strengthen the competitiveness of the non-oil sector. These efforts could ensure a more balanced economic contribution and reduce dependence on oil revenues.
Nigeria has a solid basis for accelerating its economic diversification while consolidating the progress made in oil and gas production. Inclusive policies and innovative solutions will be key to achieving sustainable and resilient growth.
