Nigeria, Africa's leading oil producer, has announced plans to increase its daily crude and condensate production to 2.7 million barrels by 2027. The announcement was made by Olu Verheijen, Special Adviser on Energy to President Bola Tinubu, at an energy conference in Dar es Salaam, Tanzania.
According to Ms Verheijen, part of this increase will come from oil condensate, a lighter and more volatile hydrocarbon than crude, enabling Nigeria to comply with its OPEC+ quota of 1.5 million barrels of crude. She stressed that improving security around oil infrastructures was a key lever for achieving this objective.
"The OPEC quota does not include condensate. Our target is a combination of condensate and crude", she said. "The idea is to try to demonstrate the ability to increase the quota if necessary."
This ambition comes at a time when Nigeria is seeking to boost its revenues in the face of major economic challenges, notably poverty and deteriorating infrastructure. In 2022, national production stood at just 1.1 million barrels a day, before rising to 1.67 million barrels in December 2023, including 1.48 million barrels of crude.
Nigeria is also on the way to becoming a net exporter of petroleum products, thanks to the commissioning of billionaire Aliko Dangote's refinery. This development could be reinforced by the abolition of fuel subsidies, which is encouraging investment in refineries. "This has enabled the downstream sector to become commercially viable for the first time in decades", said Verheijen.
The challenge remains daunting, but Nigeria is showing its determination to maximise its energy potential and attract new investment in a sector that is strategic to its economic development.
