Source: NairaMetrics
The Joint Ministerial Monitoring Committee (JMMC) of the Organisation of Petroleum Exporting Countries and its allies (OPEC+) has pegged Nigeria’s crude oil production quota for 2024 at 1.5 million barrels daily.
This was disclosed in a press statement following the committee’s meeting where it set the crude oil production for both OPEC members and the allies for the year 2025.
According to the document, the oil cartel and its allies would produce 39.7 million barrels daily with Saudi Arabia having the largest daily production quota at 10.4 million barrels followed by Russia with 9.9 million bpd.
Other decisions reached by the JMMC include; granting the JMMC the authority to hold OPEC and non-OPEC meeting regularly to review market conditions, extending the period of assessment for the year 2026 to November 2025 etc.
t stated, “Extend the assessment period by the three independent sources to the end of November 2025, to be used as guidance for 2026 reference production levels.”
“Reaffirm the mandate of the Joint Ministerial Monitoring Committee (JMMC) to closely review global oil market conditions, oil production levels, and the level of conformity with the DoC, assisted by the Joint Technical Committee (JTC) and the OPEC Secretariat. The JMMC meeting is to be held every two months.”
“Hold the OPEC and non-OPEC Ministerial Meeting (ONOMM) every six months in accordance with the ordinary OPEC scheduled conference.”
“Grant the JMMC the authority to hold additional meetings, or to request an OPEC and non-OPEC Ministerial Meeting at any time to address market developments, whenever deemed necessary.”
The 38th meeting of OPEC members and non-OPEC members would hold in December 2024.
What you should know
Nigeria’s set production quota remained unchanged from the figure set in November last year when the cartel met to set production levels for 2024. During that period, Nigeria saw an increase in proposed production quota from 1.38 million barrels per day to the current figure.
Angola infuriated by the oil cartel’s decision to cut down on its production quota decided to pull the plug on its membership of the organisation. The country stated that its interest was not being served as a member of the organisation.
Angola’s departure reduced OPEC’s membership to 12 nations, raising questions about the organization’s future cohesion and strategy.
Under Saudi Arabia’s leadership, OPEC and its allies have been working to control oil supplies to stabilize prices. This task may become more challenging with the exit of a key African member.
What this means
The set production quota of 1.5 million bpd daily is far below the daily production target of 1.78 million barrels in the 2024 budget raising concerns about budget implementation. President Bola Tinubu as part of efforts towards achieving a $1 trillion economy has sought to increase production to 4 million barrels of oil daily.
THE AUTHOR: Aghogho Udi, a writer, journalist, and researcher, deeply intrigued by the political economy of Nigeria and the broader African context. My focus lies in shedding light on the intricate connections between macroeconomics and politics, offering valuable insights that foster comprehension of Africa’s prevailing economic landscape and the world in general.
