Nigeria’s gas production increased month-on-month (MoM) by 2.9% to 2,292,951 million standard cubic feet (MSCF) in November 2024, compared to 2,292,471 MSCF in October 2024, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Year-on-year (YoY), gas output saw a marginal rise of 0.02% over the first 11 months of 2024.
During this period, 606,658 MSCF of gas was consumed locally, up 1.6% from 596,861 MSCF in 2023. Exports reached 829,156 MSCF, a 6.9% increase from 775,547 MSCF in 2023, contributing significantly to foreign exchange earnings.
Despite these improvements, the oil sector remained dominant. The NUPRC’s oil report revealed a YoY increase of 13.3% in oil output, including condensates, reaching 1.7 million barrels per day (bpd) in November 2024, up from 1.5 million bpd in 2023. MoM, oil production also rose by 10%.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises (CPPE), noted the continued dominance of the non-oil sector in Nigeria’s economy. In Q3 2024, the non-oil sector contributed 94.43% to GDP, compared to the oil sector’s 5.57%. However, oil still accounted for approximately 90% of foreign exchange earnings, highlighting structural imbalances.
Dr. Yusuf emphasized the need to address these challenges: “Productivity and competitiveness issues in the non-oil sector persist due to structural shortcomings, funding constraints, regulatory bottlenecks, and macroeconomic headwinds. Addressing these is vital for economic stability.”
Policy recommendations call for improved infrastructure, regulatory reforms, and targeted interventions to enhance the competitiveness of the non-oil sector, ensuring a more balanced contribution to GDP and foreign exchange earnings.
