The Central Bank of Nigeria (CBN) has expressed serious concerns regarding the country's ambitious target of achieving 2 million barrels per day (bpd) in crude oil production by the end of 2024. This warning comes in light of a significant decline in the number of active oil rigs and ongoing investment challenges that threaten to derail this critical economic objective.
Recent reports indicate that Nigeria's oil rig count has dropped sharply, reflecting diminished exploration and production activities across the sector. This decline is a crucial indicator of the overall health of Nigeria's oil industry, which is vital for the nation's economy as it accounts for a substantial portion of government revenue. The CBN highlighted that without substantial increases in investment and operational improvements, reaching the target may remain elusive.
“The current trajectory of our oil production is concerning,” stated a CBN spokesperson. “The reduction in active rigs and the lack of foreign investment are significant barriers to achieving our production goals. Oil remains a cornerstone of our economy, and we must address these challenges head-on.”
Despite recent efforts by the Nigerian National Petroleum Company Limited (NNPCL) to boost production, including enhanced security measures to combat oil theft and pipeline vandalism, the country has struggled to meet its production quotas. As of late 2024, Nigeria's output was approximately 1.6 million bpd, significantly below the targeted level.
The CBN emphasized the importance of restoring investor confidence in Nigeria's oil sector. “We need to create an environment conducive to investment,” the spokesperson added. “This includes addressing security concerns, improving infrastructure, and ensuring regulatory frameworks are favorable for both local and foreign investors.”