Nigeria's Oil Production Shortfall Limits Economic Gains

Dr. Chijiok Ekechukwu, the Managing Director and Chief Executive Officer of Bristol Investment Limited, stated that Nigeria is missing out on economic benefits from the current surge in global crude oil prices due to its low production capacity.

In an interview in Abuja, he noted that while Nigeria's crude oil production quota set by OPEC is 1.5 million barrels per day (mbpd), actual production fell to 1.31 mbpd in February. This shortfall limits the benefits Nigeria could derive from rising prices, which have surpassed the 2026 budget benchmark of $64.9 per barrel.

Ekechukwu warned that although higher crude prices could increase government revenue, the average Nigerian is already burdened by rising petroleum product costs, which have led to increased diesel prices and transport fares. This situation exacerbates the cost of living, as higher energy costs translate into increased prices for goods and services, thereby diminishing the purchasing power of Nigerians.