Govt eyes higher revenue as oil prices head to $150
OPEC+ agrees to boost oil output by 206,000bpd Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has reiterated Nigeria’s commitment to increasing its oil production in line
OPEC+ agrees to boost oil output by 206,000bpd
- By Muyiwa Lucas
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has reiterated Nigeria’s commitment to increasing its oil production in line with the government’s target of optimal resource utilisation.
He commended Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for piloting the petroleum sector to hit a production level of 1.84 million barrels in recent days, but urged the commission to ramp up to the target of 2 million barrels per day.
This came as JP Morgan stated that oil prices could spike above $150 - an all-time high - if flows via Hormuz remain disrupted into mid-May.
The OPEC+ also agreed yesterday to raise its oil output quotas by 206,000 barrels per day for May, a modest rise that will largely exist on paper as its key members are unable to raise production due to the U.S.-Israeli war with Iran.
Edun spoke when Commission Chief Executive, NUPRC, Mrs. Oritsemeyiwa Eyesan, visited the headquarters of the Federal Ministry of Finance in Abuja.
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“It is heartening that you can tell us that you are doing 1.84 million barrels per day. That is fantastic news. That is totally in line with the mandate of President Bola Tinubu. Clearly, you have started on a very good note. Please keep it up,” Edun said.
He described the war in the Middle East as unfortunate but said President Bola Tinubu had mandated an increased production even before the crisis began. He therefore called on the NUPRC to push the industry harder to hit 2mbpd.
“I wish you continued success. What matters is not just reaching certain heights but sustaining it. We don’t want any stopping along the way. The trajectory should be maintained and of course the magic figure is 2mbpd,” Edun said.
The war has effectively shut the Strait of Hormuz - the world’s most important oil route - since the end of February and cut exports from OPEC+ members Saudi Arabia, the UAE, Kuwait and Iraq, the only countries in the group which were able to significantly raise production even before the conflict began.
The Iran, US, Israel conflict has seen crude prices surged to a four-year high close to $120 a barrel, translating into soaring prices for transport fuels which are pressuring consumers and businesses across the globe, and triggering government action to conserve supplies.
The OPEC+ quota increase of 206,000 bpd represents less than two percent of the supply disrupted by the Hormuz closure, but it signals readiness to raise output once the waterway reopens, OPEC+ sources have said.
“In reality it adds very few barrels to the market,” said Jorge Leon, a former OPEC official who now works as head of geopolitical analysis at Rystad Energy. “When the Strait of Hormuz is closed additional barrels from OPEC+ become largely irrelevant.”
Besides the disruptions affecting Gulf members, others such as Russia are unable to increase output - in Moscow’s case due to Western sanctions and damage to infrastructure inflicted during the war with Ukraine.
Inside the Gulf, damage to infrastructure from missile and drone attacks has also been severe. Several Gulf officials have said it would take months to resume normal operations and reach production targets even if the war stopped and Hormuz reopened immediately.
A separate OPEC+ panel that also met yesterday, known as the Joint Ministerial Monitoring Committee, expressed concern about attacks on energy assets, saying they were expensive and time-consuming to repair and so have an impact on supply, OPEC+ said in a statement.
May’s OPEC+ increase is the same as the eight members had agreed for April at their last meeting held on March 1, just as the war began to disrupt oil flows.
A month later, the largest oil supply disruption on record is estimated to have removed as many as 12 to 15 million bpd or up to 15 per cent of global supply.
Responding to the finance minister, Eyesan assured of further improvement in the production figures. “We are doing 1.84 million barrels per day. That is a remarkable feat but I am sure we will do more,” she assured the minister.
The NUPRC chief executive attributed the prior dip in production in February to some unfortunate incidents on some strategic facilities as well as turnaround maintenance, but assured that all the issues have been fixed and production is ramping up again.
With regards the 2025 licensing round, Eyesan said the Commission is now in the technical and financial stage.
She expressed optimism over the growth of the petroleum sector in the near future especially because of provisions like the “drill or drop” in the Petroleum Industry Act which empowers the Commission to revoke leases of dormant acreages.
The NUPRC boss revealed that some of the acreages that were put on offer could see production as soon as a year, adding that indigenous companies were showing an impressive capacity.
Eyesan also noted that the Commission had fully complied with the Executive Order 9 of 2026, which directs the immediate suspension of the 30 per cent Frontier Exploration Fund (FEF) deduction from profit oil and gas, alongside other management fees and the direct remittance of same to the Federation Account.
