Nigeria’s Oil Output Rises by Nearly 10% in July 2025

Nigeria’s oil industry saw a notable improvement in July 2025, with daily oil production averaging 1.71 million barrels per day (bpd), according to new data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This figure includes 1.507 million barrels of crude oil and 204,864 barrels of condensates per day, reflecting a 9.9% year-on-year increase compared to the same month in 2024.

The data, shared by the NUPRC on Monday, highlights progress in the country’s ongoing effort to stabilize and grow its oil output after years of disruption caused by crude theft, pipeline vandalism, and underinvestment.

In July 2024, Nigeria was producing about 1.56 million barrels per day, which included 1.33 million barrels of crude oil and 226,866 barrels of condensates. This steady improvement over a twelve-month period is being attributed to strengthened security measures and better coordination among oil industry stakeholders.

On a monthly basis, the growth may seem modest, with output increasing by just 0.89% compared to June 2025’s total of 1.69 million barrels per day. But even this small uptick signals a positive trend, especially when considering the challenges the oil sector has faced over the past few years.

NUPRC’s data also gave detailed insight into how various oil terminals across the country performed during the month. Among them, the Forcados terminal led the way with a total output of 9.04 million barrels in July, slightly up from the 8.85 million barrels it recorded in June. This represented a growth of about 2.1%, reinforcing Forcados’ role as a key production hub in the country’s oil infrastructure.

At the Bonny terminal, production rose even more sharply. It recorded 8.07 million barrels in July, a 12.7% increase from the 7.16 million barrels produced in June. Meanwhile, the Qua Iboe terminal, another major facility, produced 4.55 million barrels in July, slightly below the 5.08 million barrels it turned out the previous month.

Escravos terminal also posted a solid gain, with output rising by 7.1% to 4.47 million barrels in July, up from 4.17 million barrels in June. Similarly, the Bonga terminal delivered 3.68 million barrels, showing a 4.2% improvement compared to 3.53 million barrels in June.

Other terminals reported more modest but steady increases. The Odudu terminal, known for the Amenam Blend, produced 2.12 million barrels in July, up 2.9% from the 2.06 million barrels seen in June. The Tulja-Okwuibome terminal registered a 2.8% increase, rising from 2.02 million to 2.08 million barrels during the same period.

Interestingly, the Brass terminal recorded one of the strongest month-on-month jumps, with output increasing by 27%. It produced 1.12 million barrels in July compared to just 877,975 barrels in June. This significant rise could be a reflection of the improved operating environment and fewer disruptions in the region.

While these figures are promising, they are only part of a broader effort by the Nigerian government to restore the country’s place as one of Africa’s top oil producers. Earlier this month, NUPRC’s Chief Executive, Gbenga Komolafe, announced that oil production had, at one point in the previous month, surpassed 1.8 million barrels per day. Current average production now hovers around 1.78 million bpd.

Komolafe attributed the improvement to an increased presence of security personnel and stepped-up surveillance operations around oil installations and pipelines, particularly in the Niger Delta region. He emphasized that the country is still pushing toward its medium-term goal of reaching 3 million barrels per day, an ambitious target that would require major investments and infrastructure upgrades.

Industry analysts also believe that the ongoing reforms in the petroleum sector, including licensing round transparency and the implementation of the Petroleum Industry Act (PIA), have started to build investor confidence again. For years, foreign investment in Nigeria’s oil sector declined sharply due to regulatory uncertainty, insecurity, and the global energy transition. But there now appears to be a renewed interest in upstream activities, thanks in part to better governance and policy stability.

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) has also taken note of Nigeria’s recent gains. In its latest market update, OPEC confirmed that Nigeria produced an average of 1.505 million barrels of crude oil per day in June 2025, consistent with NUPRC’s domestic reporting. This puts Nigeria in a stronger position within the OPEC alliance, especially at a time when many member countries are navigating complex production caps and global market fluctuations.

Still, while these developments are encouraging, experts caution that Nigeria’s oil sector is not out of the woods yet. Issues such as oil theft, aging infrastructure, and rising operational costs continue to threaten production stability. In addition, as the global shift toward renewable energy accelerates, Nigeria will need to balance boosting oil output in the short term with diversifying its energy mix in the long run.

For now, however, the steady rise in oil production is a welcome development, especially as the country battles inflation, a weak currency, and fiscal pressure. Oil remains Nigeria’s largest source of foreign exchange and a critical part of government revenue. Higher output means more earnings for the country and, potentially, more funds available for investment in infrastructure, social services, and economic diversification efforts.

If current progress continues and the gains are sustained through the remaining months of the year, Nigeria may be well on its way to recovering its pre-pandemic oil production levels. That, in turn, could have a ripple effect across the economy, providing much-needed support as the country navigates a challenging but hopeful path forward.