Angola has emerged as the top crude oil producer in Africa, surpassing Nigeria’s output level, which hit a new low in April 2023. The Organization of Petroleum Exporting Countries’ (OPEC) monthly oil market report (MOMR) for April 2023 shows that Angola recorded a crude production of 1.06 million barrels per day (mbpd), while Nigeria’s output dropped by 23% MoM to 999,999 barrels per day, from 1.3 million bpd in March 2023.
Nigeria’s oil output has been declining due to various factors, including oil theft, which has affected the country’s economy. The country’s oil production declined to about 1.1 mbpd in the second half of 2022. However, Nigeria’s oil output started to recover after a nationwide outcry in the fourth quarter of 2022, hovering at 1.3 million bpd in the first quarter of 2023. Unfortunately, Nigeria’s output level dropped again to less than 1.0mbpd in April 2023, its lowest production rate this year.
Angola’s output, on the other hand, shows steady increases, making it Africa’s top crude oil producer. This development underscores the importance of diversification in Nigeria’s economy, which has long relied on oil exports for its revenue. The government must take steps to attract investments in other sectors and reduce the country’s dependence on oil exports.
Nigeria’s economy faced challenges in gaining momentum in the first quarter of 2023, according to OPEC’s MOMR. The report noted that business activity and consumer spending remained subdued, in addition to high input-cost inflation and lower employment levels compared with 2022.
The OPEC report also showed that total OPEC-13 crude oil production averaged 28.60 million barrels per day in April 2023, lower by 191,000 barrels per day, month-on-month. Crude oil output increased mainly in Saudi Arabia, Angola, and Iran, while production in Iraq and Nigeria declined.
The decline in Nigeria’s oil output has significant implications for the country’s economy, as oil exports account for a significant portion of Nigeria’s revenue. The country needs to diversify its economy to reduce its reliance on oil exports and attract investments in other sectors. The Nigerian government has launched various initiatives aimed at diversifying the economy, such as the Agriculture Promotion Policy and the National Automotive Industry Development Plan.
In conclusion, Angola’s emergence as Africa’s top crude oil producer and Nigeria’s declining oil output highlight the need for Nigeria to diversify its economy. The country’s government must take steps to attract investments in other sectors to reduce its dependence on oil exports and strengthen the economy.
