Big Win for Nigeria! Crude Production Surges to 1.8 Million Barrels — What This Means for Naira
- Nigeria’s crude oil production reached a new milestone for the first time in July 2025, hitting 1.8 million barrels per day
- Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said the new milestone is the first in a long while
- The figure indicates a remarkable rebound from months of fluctuating output caused by oil theft, pipeline vandalism, and underinvestment
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Nigeria’s crude oil production has surged past the 1.8 million barrels per day (bpd) mark for the first time in July 2025, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
This significant milestone was announced at a stakeholders’ workshop held in Abuja, as part of the commission’s drive to reposition the oil and gas sector for long-term sustainability.
Source: Getty Images
New output levels reflect growing stability
NUPRC Chief Executive, Gbenga Komolafe, disclosed that Nigeria’s daily crude oil production stood at 1.824 million bpd as of the previous day.
The figure indicates a remarkable rebound from months of fluctuating output caused by oil theft, pipeline vandalism, and underinvestment.
“This production level signals renewed progress in stabilising our output and reflects the impact of recent reforms in the sector,” Komolafe said.
The rise in production comes as a welcome development for a country that depends on crude oil for over 70% of its export revenue and a significant portion of its budgetary income.
How increased production supports the naira
Higher crude oil production translates directly into increased foreign exchange inflows, which support the value of the naira.
With more oil available for export, Nigeria can earn more dollars, which helps stabilise the exchange rate and ease pressure on the local currency.
In recent months, the naira has suffered sharp depreciation due to declining reserves and forex scarcity.
However, with production rebounding and oil prices hovering above $80 per barrel, a sustained increase in output could boost dollar liquidity, slow naira depreciation, and restore investor confidence in Nigeria’s economy.
Boost to external reserves and fiscal strength
The crude production milestone is also expected to benefit Nigeria’s external reserves, which had been declining due to dwindling exports and high demand for foreign exchange.
With a higher daily output, the Central Bank of Nigeria (CBN) could see improved reserve levels, giving the country stronger ammunition to defend its currency and meet international obligations.
Additionally, increased oil revenues will improve government income and reduce the budget deficit, which has widened due to lower oil receipts and rising debt service costs.
NUPRC launches offshore development drive
To further support growth, the NUPRC has inaugurated a Shallow and Deepwater Cluster Development Committee.
According to Komolafe, the committee will work closely with oil companies to design a strategic framework for unlocking Nigeria’s underexplored offshore resources.
“These deep and shallow water reserves remain largely underdeveloped. We must take decisive action to boost production and reposition oil as a pillar of national growth,” he stated.
The committee is expected to provide actionable recommendations that will guide new policy directions, facilitate investment, and reduce the time to market for offshore assets.
Industry collaboration seen as key to progress
The Abuja workshop—titled “Harnessing the Potentials of Deep and Shallow Water Oil and Gas Accumulations through Clusters and Nodal Development”—brought together top players in the upstream sector.
It is part of NUPRC’s broader strategy to enhance sustainability, improve capacity utilisation, and foster innovation across the value chain.
Komolafe emphasised the need for stronger industry collaboration, noting that the upstream sector remains pivotal for revenue generation, job creation, and long-term energy security.
Source: Getty Images
“Nigeria’s oil sector must be retooled to serve as a foundation for broad-based economic revival,” he added.
NNPCL posts N905bn profit
Legit.ng earlier reported that Nigeria’s state-owned oil company, the Nigerian National Petroleum Company Limited (NNPCL), has reported a ₦905 billion post-tax profit for June 2025, according to its newly released monthly financial and operational report.
The impressive earnings come on the back of rising oil and gas production, positioning NNPCL as a major contributor to Nigeria’s revenue amid ongoing economic pressures.
Crude oil and condensate production reached an average of 1.68 million barrels per day (mbpd) in June, the highest level recorded since January 2025.
Source: Legit.ng
