Nigeria to increase oil output when drilling is continued on ogoni land after more than 30 years of hiatus

For the first time in more than thirty years, the federal government and important stakeholders prepared to start exploration and oil drilling operations again on Ogoni’s land, the river state, which will significantly increase the production of Nigerian crude oil.

The announcement that oil production in Ogoniland will soon be continued, more than 30 years after the drilling activities are stopped in the region, carried out by the national security advisor to Nuhu thousand during the presentation at the National Progressives Congress (APC) National Summit held in Abuja on Thursday.

Nigerian oil production increased to average 1.8 million barrels per day in 2025, according to thousand, which also mentioned that this progress was part of a greater achievement than the government under the President of the Tinubu Soccer.

Considering the reduced investment, vandalism, and determination that deteriorating, this is a significant turning point in the country’s efforts to restore output.

Although restarting the upcoming oil production in marginalized historical areas but rich in oil inspires hopes for economic revitalization, he also lights concerns about environmental safety and community involvement.

Extra 50,000 to 100,000 barrels per day (BPD) from Ogoni can greatly help Nigeria’s efforts to reach the OPEC output limit (~ 1.8 million BPD); Therefore, this discovery will increase the view of Nigeria’s production.

Although the restart of drilling operations on ogoni land is not enough to change the price of global oil, he stabilizes the level of Nigeria’s exports, monitored by traders. This can strengthen Nigeria’s position in OPEC and increase supply reliability.

This will experience an increase in the flow of FX because stronger oil exports produce an increase in the flow of dollar through the Nigerian central bank (CBN), strengthening Naira.

This can reduce the scarcity of FX, stable currency level, and reduce demand pressure in official and parallel markets. Because the increase in oil production is translated into better external reserves and greater income, which is an important factor for creditors, it is also a sign of increased credit risk.

In addition, this can increase the perception of fixed income investors, simply reduce Nigerian eurobond spread, and increase demand for state debt and nigerian quasi-neign debt (NNPC bonds, instruments supported by the state, etc.).

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