-
OPEC+ approves a fresh 188,000 barrels per day oil production increase for September, completing the rollback of a key layer of 2023 supply cuts aimed at stabilising the global crude market.
-
The latest adjustment marks the fourth consecutive monthly output hike by the producers’ alliance, although actual global supply growth remains constrained by sanctions, technical limitations, and geopolitical disruptions affecting several member states.
-
Nigeria stands to benefit from the decision as it continues to exceed its OPEC production quota, with crude output rising to 1.56 million barrels per day in June—its highest monthly production since April 2020.
-
Higher crude production, improved NNPC profitability, and increased flexibility under the OPEC+ production framework are expected to strengthen Nigeria’s oil revenues.
August 02, (THEWILL) — The Organization of the Petroleum Exporting Countries and its allies (OPEC+) have approved a fresh increase of 188,000 barrels per day (bpd) in oil production quotas for September.
It further restored crude supplies to the global market as Nigeria intensifies efforts to achieve its 1.84 million barrels per day production benchmark contained in the 2026 Federal Budget.
The decision, reached on Sunday during a virtual ministerial meeting involving key alliance members led by Saudi Arabia and Russia, marks the fourth consecutive monthly output increase approved by OPEC+ as the producer group continues unwinding production cuts introduced in 2023 to stabilise the global oil market.
The latest decision reinforces OPEC+’s cautious strategy of gradually returning crude oil to the international market despite persistent geopolitical uncertainties, particularly tensions involving Iran, and continued disruptions affecting oil exports across parts of the Middle East.
Although the alliance has approved successive production increases, their impact on actual global supply has remained limited because several member countries have struggled to raise output to their allocated quotas.
Production constraints arising from ageing infrastructure, technical challenges, international sanctions, and disruptions to oil flows through the Persian Gulf and the Strait of Hormuz have prevented many producers from fully utilising their quotas.
The September increase therefore provides additional production flexibility for major Gulf producers, especially Saudi Arabia, which continues to hold most of OPEC+’s spare production capacity and is expected to increase output further once regional supply routes normalise.
With the September adjustment, the alliance has effectively completed (at least on paper), the reversal of one of the major layers of production cuts adopted in 2023 to prevent a global oil glut amid weak demand and falling prices.
Nigeria is well-positioned to benefit
The latest OPEC+ decision comes as Nigeria continues to consolidate its recovery in crude oil production, strengthening prospects for higher government revenue and improved foreign exchange inflows.
According to data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria produced an average of 1.56 million barrels per day of crude oil in June 2026, representing the country’s highest monthly production level since April 2020.
The June performance followed the average production of 1.53 million barrels per day recorded in May, making it the second consecutive month Nigeria exceeded its assigned OPEC production quota.
Before the recent recovery, the last time Nigeria surpassed its OPEC allocation was in July 2025, highlighting the sustained improvement achieved through enhanced production efficiency, improved security around oil assets, and intensified efforts to curb crude oil theft and pipeline vandalism.
The stronger production trend is expected to move Nigeria closer to the 1.84 million barrels per day crude oil benchmark upon which the Federal Government based its 2026 fiscal projections.
Higher Production Strengthens Revenue Outlook
Nigeria’s improving crude production has already begun translating into stronger financial performance for the national oil company.
NNPC Limited recently reported a profit after tax of ₦535 billion in June 2026, representing a 15.8 per cent increase from the ₦462 billion posted in May.
The company also generated ₦4.39 trillion in revenue during the month, its strongest monthly earnings since August 2025, reflecting improved operational performance and stronger crude production.
While uncertainty surrounding global oil prices persists because of evolving geopolitical tensions and changing demand patterns, Nigeria’s recent production gains place Africa’s largest oil producer in a stronger position to maximise the opportunities created by OPEC+’s latest production adjustment and sustain its ongoing recovery in the upstream petroleum sector.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
