Nigeria recorded 1.67 million barrels of oil (mmbbl/d) and condensates per day, compared with just under a million barrels some months ago, due to security improvements in the producing Niger-Delta region.

In July 2023, the country’s crude oil and condensate output fell to 1.29 mmbbl/d from 1.48 mmbbl/d in the previous month. However, it turned to record an increase of over 300,000 bbl/d in August.

Mele Kyari, chief executive of the Nigerian National Petroleum Corporation (NNPC), said at a press briefing in Abuja on Friday that President Bola Tinubu has re-engineered the security approach. “We’ve already seen very significant changes in our production environment.”

Large-scale oil theft from pipelines and wells has hobbled the country’s output and crimped exports in recent years, damaging Nigeria’s finances and leaving President Tinubu with one of his biggest challenges.

Tinubu, who has embarked on Nigeria’s boldest reforms in decades, scrapped a costly but popular subsidy on petrol that cost the country $10 billion last year. The central bank, under Tinubu, has also lifted foreign exchange trading restrictions.

Kyari said Nigeria would have been spending about 1 trillion naira ($1.3 billion) monthly on the subsidy “in today’s market conditions,” he said, adding that petrol consumption is down 30% to 46 million liters after the subsidy removal.

He added that foreign exchange demand for petrol imports has also declined.

“We simply don’t have those resources anymore. We’re not just saving money, we’re also facing realities around what we can afford,” Kyari said.

Nigeria’s oil sector is yet to contribute positively to the country’s economic growth, which slowed to 2.5%. in the second quarter, due to years of underinvestment, crude oil theft, and pipeline vandalism.

In the second quarter, the dominant oil sector which accounts for the bulk of government revenue and 90% of foreign-exchange reserves, contracted 13.43%.

The Nigerian National Petroleum Corporation (NNPC) plays a pivotal role in the country’s oil and gas sector. As the state oil corporation, NNPC is responsible for the exploration, production, and marketing of petroleum and petroleum products. Under the visionary leadership of NNPC, Nigeria’s oil production has surged to new heights in 2023.