Nigeria’s Oil Output Hits 1.8m BPD Amid Global Market Uncertainty

Nigerian crude oil prices remained steady as investors weighed the potential impact of a proposed US-Russia deal to end the Ukraine war on global oil flows.

Bonny Light crude broke a six-day losing streak, settling at $68.85 per barrel.

The US and Russia are negotiating an agreement that could formalize Russia’s control over occupied Ukrainian territories.

However, securing support from Ukraine and European allies remains uncertain.

Meanwhile, former US President Donald Trump recently hiked tariffs on Indian imports to 50% as retaliation for purchasing Russian oil, with similar threats looming over China.

Despite Western sanctions targeting Russia’s oil revenue, market players have adapted to supply disruptions caused by geopolitical tensions, tariffs, and sanctions. In a sign of this flexibility, Chinese refiners recently purchased Russian Urals crude, a grade they typically avoid.

Nigeria’s crude production rose to 1.8 million barrels per day (bpd) in July—the highest in over five years—driven by improved onshore operations and fewer pipeline disruptions.

Indigenous firms are playing a larger role as international oil companies scale back.

Enhanced logistics, including barging by operators like Neconde, have boosted exports from the Ugo Ocha terminal to 65,000 bpd. The Petroleum Industry Act (PIA) of 2021 has also revitalized the sector, introducing streamlined regulations through the NMDPRA and NUPRC.

The Dangote refinery hit a record high in July, importing 590,000 bpd of crude.

However, only 40% (220,000 bpd) came from Nigerian grades like Bonny Light and Escravos, while 60% (370,000 bpd) was sourced internationally.

Cheaper US crude and increased OPEC+ supply have made foreign barrels more attractive than some local alternatives.

Despite an NNPC agreement allowing naira-denominated crude purchases, Dangote has struggled to secure consistent domestic supply, with actual deliveries falling short of commitments.

As global oil prices dipped over 7% in August, Nigeria’s resilient production and regulatory reforms position it for stronger market influence—even as external uncertainties persist.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled:  Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

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