Abuja, Nigeria — Nigeria’s oil production saw a decline of 50,000 barrels per day (bpd) in March, averaging 1.5 million bpd in line with its designated quota.
The drop comes amid delays in loading the Bonny Light crude grade, following a fire outbreak at the Trans-Niger Pipeline.
This development coincided with the Organisation of Petroleum Exporting Countries (OPEC) implementing output reductions, particularly in Nigeria and Iraq, ahead of its long-anticipated plan to gradually restore production.
A survey conducted by Bloomberg revealed that OPEC collectively cut output by 110,000 bpd, bringing total production to 27.43 million bpd. Despite these reductions, OPEC leaders continue to urge strict compliance with production quotas, which some member nations have repeatedly exceeded.
Led by Saudi Arabia and Russia, the OPEC+ alliance has outlined plans to begin incremental production increases, marking a shift from the long-standing supply restrictions aimed at stabilizing oil prices.
This adjustment follows pressure from global stakeholders, with some delegates citing the influence of former U.S. President Donald Trump, who previously urged OPEC to curb oil prices.
Among OPEC nations, Iraq recorded the second-largest output reduction, cutting 40,000 bpd, bringing its total production to 4.15 million bpd—though still exceeding its official limit of 4 million bpd.
Meanwhile, the United Arab Emirates (UAE) increased production by 30,000 bpd, reaching 3.33 million bpd, further surpassing its assigned quota. However, OPEC’s internal data suggests both Iraq and the UAE are largely aligned with their agreed levels.
As part of the OPEC+ roadmap, the alliance is set to gradually reinstate approximately 138,000 bpd this month, marking the first in a series of planned increments extending into late 2026.
A final decision on the next production phase, scheduled for May, is expected in the coming days, with several delegates anticipating its approval.
By Enoch Odesola | April 3, 2025
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