Nigeria recorded the largest oil production cut among OPEC members in March, reducing output by 50,000 barrels per day (bpd). This move aligns with the cartel’s tightened quotas, as OPEC collectively lowered production by 110,000 bpd, according to a Bloomberg report.
Nigeria’s Oil Output Drops to 1.5 Million BPD
The cutback brought Nigeria’s production to an average of 1.5 million bpd, in line with its OPEC-mandated quota. This reduction follows ongoing efforts by OPEC to regulate global oil supply and stabilize prices.
However, Nigeria’s oil production has continued to struggle, falling significantly short of the 2.06 million bpd target set by President Bola Tinubu’s administration.
Pipeline Explosion Disrupts Bonny Light Crude Exports
One major factor behind the production drop was the recent explosion at the Trans-Niger Pipeline, a crucial export route for Bonny Light crude. The incident caused loading delays, disrupting supply and forcing Nigeria to cut output.
The explosion also took on a political dimension, as President Tinubu attributed it to the political crisis in Rivers State. In response, he declared a state of emergency in the region and sacked all elected officials.
OPEC Production Adjustments: Iraq and UAE in Focus
Other OPEC members also made production adjustments:
✔ Iraq implemented the second-largest cut, reducing output by 40,000 bpd to 4.15 million bpd, although this remains above its agreed quota of 4 million bpd.
✔ The UAE bucked the trend by increasing production by 30,000 bpd, exceeding its limit.
OPEC+ Signals Future Production Increases
Despite the ongoing cuts, OPEC+—led by Saudi Arabia and Russia—has signaled plans to gradually restore production. The group is expected to add approximately 138,000 bpd this month, as part of a phased supply increase that will extend through late 2026.
The decision comes amid international pressure, including reported calls from U.S. President Donald Trump, urging Saudi Arabia to increase output to lower global oil prices. However, it remains uncertain if this directly influenced OPEC’s latest strategy.
Key Takeaways
✔ Nigeria’s oil production cut was primarily driven by OPEC’s quota enforcement and the pipeline explosion affecting Bonny Light crude exports.
✔ The country remains far from its 2.06 million bpd target, struggling to maintain even 1.5 million bpd.
✔ OPEC+ is slowly increasing production, but some members, like the UAE and Iraq, are exceeding their limits.
✔ Geopolitical and market forces continue to shape oil production strategies, with potential adjustments expected in the coming months.
As Nigeria grapples with operational challenges and OPEC’s restrictions, the future of its oil sector hinges on infrastructure improvements, regulatory stability, and global energy market dynamics.
