Nigeria’s crude oil production recorded a modest recovery of 69,000 barrels per day in March 2026, even though output remained below the 1.5 million barrels per day quota given by the Organisation of Petroleum Exporting Countries (OPEC)
Data from the latest OPEC’s Monthly Oil Market Report, showed that Nigeria’s production rose to 1.383 million bpd in March from 1.314 million bpd in February, representing an increase of 69,000 bpd month-on-month.
This gain, according to OPEC, was based on direct communication figures reported by member countries, of which Nigeria is key, rather than secondary estimates. However, the 1.383 million bpd figure was far less than Nigeria’s OPEC output of 1.459 million bpd recorded in January.
But across Africa, production trends were largely mixed. Algeria recorded a slight uptick, increasing to 973,000 bpd in March from 971,000 bpd in February, while Congo increased production from 291,000 bpd to 307,000 bpd.
Nigeria has struggled without success to meet its OPEC production quota, with the challenge driven mainly by a combination of aging infrastructure, security issues, and technical disruptions.
Despite the mild recovery, Nigeria continues to fall short, although it briefly met the requirement in January, June and July last year. The inability to meet these quotas has created a double-edged sword for the Nigerian economy.
The government is leaving billions of dollars in potential revenue on the table, while local refineries have occasionally had to look for international crude supplies because domestic production is insufficient to meet their full capacity.
Elsewhere, the data showed that Saudi Arabia recorded a decline to 7.763 million bpd in March from 10.111 million bpd in February, according to direct communication data, indicating a significant month-on-month adjustment. Iraq also saw a sharp reduction to 1.906 million bpd, while Kuwait fell to 1.2 million bpd.
Besides, the United Arab Emirates posted a decline to 1.908 million bpd, continuing its downward adjustment trend for the month. Iran, by contrast, remained relatively stable at 3.060 million bpd, showing only a marginal decline.
Meanwhile, an Intergovernmental Agreement (IGA) on a planned $25 billion Nigeria-Morocco gas pipeline will be signed this year, the head of Morocco’s hydrocarbons and mining agency (ONHYM), Amina Benkhadra, has said.
Agreed a decade ago, the project – known as the African Atlantic Gas Pipeline – would run 6,900 km on a hybrid offshore-onshore route with a maximum capacity of 30 billion cubic metres (bcm), including 15 bcm to supply Morocco and support exports to Europe, ONHYM’s Benkhadra told Reuters by email.
The pipeline, which has the backing of the Economic Community of West African States (ECOWAS), has completed its feasibility study and front-end engineering design (FEED) stages.
Following the intergovernmental agreement, a high authority for the pipeline will be established in Nigeria, bringing together ministerial representatives from each of the 13 participating countries to provide political and regulatory coordination, Benkhadra told Reuters.
A project company will also be created in Morocco as a joint venture between ONHYM and the Nigerian National Petroleum Company Limited (NNPC) to lead the execution, financing and construction phase, she said.
The pipeline would spur economic integration across West Africa by expanding electricity generation and facilitating industrial and mining development, while helping Morocco position itself as an energy bridge between Africa and Europe, she added.
Initial segments of the project would connect Morocco to gas fields in Mauritania and Senegal, and link Ghana to Cote d’Ivoire further south, before a final segment connects Ghana to Nigeria’s gas fields, she noted. First gas from the initial phases is expected in 2031, Benkhadra said.
“The project does not rely on a singleglobal final investment decision,” she explained, adding that each segment is designed to be developed as “standalone system” to allow for early value build up, she said.
No final funding commitments have been secured yet, she stressed, adding that the financing structure will be led by the project company, which will mobilise a mix of equity and debt. “The project is attracting strong interest due to its scale, its phased structure, and its strategic positioning,” Benkhadra noted.
Emmanuel Addeh
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