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Oil Market: Nigeria’s Crude Output Drops

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The Organisation of Petroleum Exporting Countries (OPEC), has put Nigeria’s February, 2021, oil output at 1.4 million barrels per day, mb/d, excluding Condensate.
This, according to the March Oil Market Report, yesterday, showed a drop of 17.6 per cent when compared to the 1.7 mb/d produced in the corresponding period of 2020.
The cut in output is mainly driven by the quest of Nigeria to comply with the OPEC oil reduction directive, targeted at achieving stability in the global market.
Nevertheless, at the current price, Nigeria would not be under pressure to raise adequate funds for the execution of its 2021 budget, which was based on $40 per barrel, and 1.8 mb/d.
However, the report stated, “For 2021, world oil demand is expected at 5.9 mb/d, to stand at 96.3 mb/d. Oil requirements in the first half (1H21) are adjusted lower, mainly due to extended measures to control Covid-19 in many key parts of Europe. In addition, elevated unemployment rates in the US slowed the recovery process.
“In contrast, oil demand in the second half (2H21) is adjusted higher, reflecting expectations for a stronger economic recovery with the positive impact of vaccination rollouts.
“In regional terms, OECD oil demand is expected to increase by 2.6 mb/d in 2021 to stand at 44.6 mb/d, while non-OECD demand is seen rising by 3.3 mb/d to average 51.6 mb/d.”
Meanwhile, the price of Brent and Nigeria’s Bonny Light, which had risen to $70 per barrel, because of a recent drone attack on Saudi Arabia’s oil facility, has dropped to $69.31 and $66.03 per barrel respectively.
However, OPEC expects that the global oil demand would rise from 93.22million barrels per day, mb/d to 97.94 mb/d, thus recording an increase of 5.06 per cent between the first and fourth quarter of 2021, as many countries continue to tackle the Coronavirus pandemic.
It stated that Quarter on Quarter, QoQ, the global oil demand would stand at 93.22 mb/d in the first quarter (January – March) of 2021, showing an increase of 0.13 per cent compared to 93.10 mb/d recorded in the corresponding period of 2020.
It further showed that QoQ, it would rise to 95.92 mb/d in the second quarter (April-June) of 2021, indicating an increase of 14.4 per cent, compared to 83.82 mb/d recorded in the corresponding period of 2020.
Also, it showed that the demand would hit 97.02 mb/d in the third quarter (July-September) of 2021, showing an increase of 6.4 per cent, compared to 91.18 mb/d, recorded in the corresponding period of 2020.
The report also showed that the demand would further rise to 97.94 mb/d in the fourth quarter of 2021, indicating an increase of 4.3% compared to 93.89 mb/d recorded in the corresponding period of 2020.
The target or prediction is to rising from its crucial meeting recently, OPEC also stated, “The meeting emphasized the ongoing positive contributions of the Declaration of Cooperation (DoC) in supporting a rebalancing of the global oil market in line with the historic decisions taken at the 10th (Extraordinary) OPEC and non-OPEC Ministerial Meeting on April 12, 2020 to adjust downwards overall crude oil production and subsequent decisions.
“The ministers noted, with gratitude, the significant voluntary extra supply reduction made by Saudi Arabia, which took effect on February 1, for two months, which supported the stability of the market.
“The ministers also commended Saudi Arabia for the extension of the additional voluntary adjustments of one mb/d for the month of April, 2021, exemplifying its leadership, and demonstrating its flexible and pre-emptive approach.
“The ministers approved a continuation of the production levels of March for the month of April, with the exception of Russia and Kazakhstan, which will be allowed to increase production by 130 and 20 thousand barrels per day respectively, due to continued seasonal consumption patterns.
“The meeting reviewed the monthly report prepared by the Joint Technical Committee (JTC), including the crude oil production data for the month of February.
“It welcomed the positive performance of participating countries. Overall conformity with the original decision was 103 per cent, reinforcing the trend of aggregate high conformity by participating countries.
“The Meeting noted that since the April, 2020 meeting, OPEC and non-OPEC countries had withheld 2.3bn barrels of oil by end of January, 2021, accelerating the oil market rebalancing.
“The meeting extended special thanks to Nigeria for achieving full conformity in January, 2021, and compensating its entire overproduced volumes.
“The ministers thanked Minister of State for Petroleum Resources of Nigeria, Timipre Sylva, for his shuttle diplomacy as Special Envoy of the JMMC to Congo, Equatorial Guinea, Gabon, and South Sudan to discuss matters pertaining to conformity levels with the voluntary production adjustments and compensation of over-produced volumes.
“In this regards the ministers agreed to the request by several countries, which have not yet completed their compensation, for an extension of the compensation period until the end of July, 2021.
“It urged all participants to achieve full conformity and make up for previous compensation shortfalls, to reach the objective of market rebalancing, and avoid undue delay in the process.
“The meeting observed that in December, stocks in OECD countries had fallen for the fifth consecutive month.
“The meeting recognized the recent improvement in the market sentiment by the acceptance and the rollout of vaccine programs and additional stimulus packages in key economies, but cautioned all participating countries to remain vigilant and flexible given the uncertain market conditions, and to remain on the course which had been voluntarily decided and which had hitherto reaped rewards.”

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Oil & Energy

“NCDMB, MJD, Renaissance Launch Pipeline Engineering, Corrosion Control Training 

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March 23, 2026

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A leading indigenous oil & gas construction and servicing company, MJD Oilfield Services Limited, in partnership with the Nigerian Content Development and Monitoring Board (NCDMB) and Renaissance Africa Energy Company Limited, has officially commenced a comprehensive 12-month Nigerian Content Human Capital Development (NC-HCD) training programme.
The programme is designed to equip 33 Nigerian graduates in engineering and related disciplines with advanced technical competencies in pipeline pigging, corrosion control, and integrity monitoring, thereby strengthening local capacity within the oil and gas sector.
The intensive, year-long initiative integrates both theoretical instruction and practical, hands-on training, with the objective of developing highly skilled and industry-ready professionals capable of contributing meaningfully to Nigeria’s energy infrastructure.
Speaking at the official kick-off ceremony in PortHarcourt, the Managing Director, MJD Oilfield Services Ltd., Olayemi Familusi, emphasised the significance of the programme and urged participants to take full advantage of the opportunity.
He also commended the NCDMB for its sustained contributions to the growth and transformation of the Nigerian oil and gas industry.
“The Nigerian oil and gas industry has undergone remarkable development since the establishment of the NCDMB,” he stated. “We commend the Board for its unwavering commitment to the advancement of Nigerian talent and the industry at large. Beneficiaries are encouraged to apply these acquired skills within the country, where opportunities for growth and impact continue to expand.”
In his address, the Executive Secretary, NCDMB, Felix Omatsola Ogbe, described the initiative as a strategic investment in Nigeria’s energy security.
Represented by the Manager, Human Capital Development, NCDMB, Mrs. Tarilate Bribena-Teide, Ogbe highlighted the critical importance of pipeline integrity expertise, particularly for key national assets such as the 614-kilometre Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline.
He further underscored the Board’s strict expectations regarding discipline and commitment, insisting that a minimum attendance rate of 99.9 per cent  is mandatory.
Ogbe said “The Board will not hesitate to withdraw and replace any participant who demonstrates a lack of commitment. This programme requires full dedication and has the potential to significantly transform participants’ career trajectories.”
Also speaking at the event, representative of Renaissance Africa Energy Company Limited, Funso Alabi, reaffirmed the importance of strategic collaboration in developing a competent workforce capable of sustaining the long-term reliability and efficiency of Nigeria’s energy infrastructure.
The technical training partner, DORET Limited, presented an overview of the curriculum, which is aligned with the NCDMB Human Capital Development Implementation Guidelines (2020) and the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
The programme combines classroom-based learning with practical workshop sessions, with a strong emphasis on promoting local content development and technical excellence.
To ensure participants’ full engagement, the programme is fully supported with monthly stipends, meal allowances, mobilisation and demobilisation allowance, learning resources (including laptops and Personal Protective Equipment), health insurance coverage, and both local and international certifications upon successful completion.
The initiative further represents a critical pathway for young Nigerian graduates to transition into the oil and gas industry, reinforcing nation’s capacity to meet its complex technical demands with locally developed expertise.
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Fuel Price Hike: NAJA Tasks FG On Crude Supply To Local Refineries 

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March 23, 2026

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The Nigeria Auto Journalists Association(NAJA ), has called on President Bola Ahmed Tinubu to take decisive steps toward stabilising Nigeria’s fuel market by guaranteeing the direct supply of crude oil to domestic refineries, particularly the Dangote Refinery, as global tensions continue to unsettle energy prices.
In a statement issued last Thursday, the association warned that the rising cost of petrol, exacerbated by the ongoing crisis in the Middle East, poses a serious threat to economic stability and the welfare of Nigerians already grappling with inflationary pressures.
NAJA argued that Nigeria must urgently insulate its downstream petroleum sector from external shocks by strengthening local refining capacity.
The association’s intervention comes amid heightened volatility in the international oil market, where geopolitical developments have continued to influence crude prices and, by extension, the cost of refined petroleum products.
NAJA noted that while recent policy measures by the federal government signal a willingness to address the crisis, more targeted interventions are required to achieve lasting stability. The group specifically referenced the government’s plan to distribute 100,000 Compressed Natural Gas (CNG) conversion kits nationwide, describing it as a commendable but insufficient response to the scale of the challenge.
According to the association, the CNG initiative represents a forward-looking approach to energy diversification, particularly within the transportation sector. However, it stressed that alternative fuel adoption alone cannot resolve the immediate pressures facing petrol consumers. Instead, NAJA maintained that ensuring the efficient operation of domestic refineries remains the most viable short-term solution.
Speaking on behalf of the association, its Chairman, Theodore Opara, urged the federal government to implement policies that would enable local refineries to access crude oil directly from the Nigerian National Petroleum Company Limited, preferably in naira. He argued that such a move would significantly reduce the exposure of domestic fuel production to fluctuations in the global oil market.
Opara, while noting that the current arrangement, under which the Dangote Refinery imports a substantial portion of its crude feedstock, undermines the refinery’s potential to stabilise local fuel prices explained that reliance on imported crude effectively ties domestic refining operations to international pricing dynamics, thereby limiting the benefits of local production.
“Dangote Refinery imports most of its crude, hence it is exposed to the effects of the ongoing crisis in the Middle East,” he said. “If the refinery gets direct crude supply from the NNPC, it will strengthen the country’s long-term energy diversification strategy and reduce exposure to international supply shocks.”
The NAJA chairman further noted that Nigeria’s continued dependence on imported refined petroleum products remains a major vulnerability, despite its status as Africa’s largest crude oil producer. He described the situation as economically unsustainable, particularly at a time when global uncertainties are driving up energy costs.
“If Nigeria’s major refineries, including Dangote, receive crude locally and transact in naira, the country will reduce its vulnerability to global market disruptions. It will also help stabilise the downstream petroleum sector,” he added.
While acknowledging the potential of the CNG programme to reduce dependence on petrol over time, NAJA insisted that the backbone of Nigeria’s energy strategy must remain anchored in efficient domestic refining. The association warned that failure to address crude supply constraints could undermine ongoing efforts to reform the sector.
“CNG is a good transition policy for transportation, but the backbone of Nigeria’s fuel supply must still come from efficient domestic refining,” Opara said.
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Oil & Energy

FG Advances $20bn Nigeria-Europe Gas Pipeline Plan

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March 23, 2026

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The Federal Government said it has progressed in its plan on the proposed transcontinental gas pipeline aimed at delivering its vast natural gas to European markets.
The proposed pipeline, still at an early development stage, is being advanced by a consortium of global industry players and would be subject to extensive technical, commercial, and regulatory processes.
Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, who spoke alongside key industry stakeholders, during discussions on the proposed pipeline, at a meeting in London, United Kingdom, described the engagement as both timely and historic, adding that Nigeria is poised to attract investors into its gas sector.
In his words “Nigeria is set for investors to take advantage of this natural gas. The Petroleum Industry Act and the executive orders by Mr President for the petroleum sector have set a conducive environment to attract investments to the sector.
“We must be intentional in the utilisation of our resources. So long as we have these reserves, we must take advantage of them and better the lives of those in the region,” Ekpo said.
The minister further noted that, with appropriate financial backing in place, he sees no obstacle to the project coming to fruition.
In a statement signed by the Spokesperson to the minister, Louis Ibah, Ekpo noted that the move is aimed at strengthening energy security and unlocking long-term economic value.
The proposed pipeline, described as a transformative gas corridor, is designed to transport up to 30 billion cubic metres of gas annually from Nigeria’s southern reserves through Chad and Libya, before extending subsea to Sicily, Italy, and into the broader European market.
According to the statement, stakeholders expressed optimism that the proposed pipeline project would redefine Nigeria’s role in the global energy market while deepening ties with Europe.
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