The Nigerian oil industry has hit a significant milestone as the industry has just recorded its highest monthly crude production level of the year in July 2025. According to the latest figures from the Organisation of Petroleum Exporting Countries (OPEC), Nigeria pumped an average of 1.559 million barrels per day (bpd) of crude oil, excluding condensates, marking an 11 percent increase compared to the same period in 2024.

OPEC’s August 2025 Monthly Oil Market Report revealed that output in July rose from 1.386 million bpd a year before to 1.559 million bpd, cementing the month as Nigeria’s most productive in 2025 based on data from secondary sources. Month-on-month, production saw a modest one percent boost, edging up from June’s 1.543 million bpd.

Figures from direct communication with Nigerian authorities also confirmed an increase, showing output climbing from 1.307 million bpd to 1.559 million bpd.

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While the achievement is notable, production still falls short of Nigeria’s 2025 budget target of 2.06 million bpd, pegged at $75 per barrel and an exchange rate of ₦1,500 to the dollar. Nonetheless, the July figure surpassed OPEC’s 1.5 million bpd quota for Nigeria for the third time this year, a sign of gradual recovery in the sector.

Alongside this production milestone, the downstream oil market also saw a major development. The Dangote Petroleum Refinery announced a cut in its petrol (PMS) ex-depot price from ₦850 to ₦820 per litre, effective August 12, 2025.

The refinery’s Group Chief Branding and Communications Officer, Anthony Chiejina, confirmed the reduction, noting that it reflects the company’s “unwavering commitment to national development” and pledge to maintain a steady, uninterrupted fuel supply.

Chiejina also revealed plans for a phased rollout of 4,000 Compressed Natural Gas (CNG)-powered trucks for fuel distribution nationwide, beginning August 15, 2025. This initiative, he said, aligns with the company’s strategy to promote sustainable energy solutions while boosting operational efficiency.

Market analysts say the move by Dangote is already influencing the pricing strategies of other fuel suppliers. Speaking to Energy Vanguard, the Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, noted that Dangote Petroleum Refinery has been setting the pace, forcing competitors to review their depot prices.

The downstream sector remains highly dynamic, with further adjustments likely as global oil market volatility continues to shape local fuel pricing.

Nigeria’s July oil production peak and Dangote’s price cut represent two significant markers in the nation’s energy landscape, one showing signs of upstream recovery, the other reshaping downstream competition.

Whether these gains will be sustained in the face of global price swings, infrastructure challenges, and policy shifts remains to be seen. For now, motorists may see some relief at the pumps, and the oil sector has a fresh performance benchmark to surpass in the months ahead.

Meiza Nigeria