By Benson Daniel
Nigeria produced an average of about 1.5 million barrels of crude oil per day in August 2026, maintaining production around the country’s Organisation of Petroleum Exporting Countries quota.
Data from the Nigerian Upstream Petroleum Regulatory Commission showed that crude oil production stood at approximately 1.50 million barrels per day during the month, slightly below the 1.505 million barrels per day recorded in July.
When condensate production is included, Nigeria’s combined crude oil and condensate output rose to about 1.68 million barrels per day in August, up marginally from 1.67 million barrels per day in July.
The August performance represents Nigeria’s fourth consecutive month of meeting its OPEC crude production quota of 1.5 million barrels per day.
The improvement in combined output was partly linked to the resolution of operational challenges affecting the Single Buoy Mooring at the Erha field, which had previously constrained production.
Despite the marginal improvement, crude production remains below the level required to fully meet the assumptions contained in Nigeria’s 2026 budget. The budget is based on an average production target of about 1.84 million barrels per day, meaning the latest output remains significantly below the government’s benchmark.
Nigeria’s oil production has fluctuated considerably during the year. Combined crude and condensate output rose from about 1.55 million barrels per day in March to 1.66 million in April and 1.70 million in May before reaching about 1.74 million barrels per day in June.
Production subsequently fell to 1.67 million barrels per day in July before recording a modest recovery in August.
The continued ability to maintain crude production around the OPEC quota provides some support for government revenues and export earnings, particularly as international oil prices remain elevated.
However, the gap between actual production and the budget benchmark remains a concern for fiscal planning. Higher production would provide additional crude volumes for export and domestic refining while potentially strengthening government revenue and foreign exchange inflows.
Nigeria’s upstream sector has continued to face operational challenges, including disruptions at producing fields and infrastructure constraints. Addressing these problems remains critical to achieving sustained production growth.
The latest figures therefore present a mixed picture: Nigeria has maintained compliance with its OPEC allocation for a fourth consecutive month, but production has yet to reach the level targeted in the national budget.
Further improvements in production will depend on restoring affected assets, reducing operational disruptions and maintaining stable crude evacuation infrastructure.
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