By Clarion Newschannel Economic Desk
Abuja, December 25, 2025
Nigeria’s crude oil production quota will remain capped at 1.5 million barrels per day (bpd) through December 2026, following a decision by the Organisation of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+). The move, announced earlier this month, aims to support global oil market stability by rolling over existing output levels for participating countries.
The decision came during OPEC+’s recent ministerial meetings, where the group reaffirmed overall production adjustments agreed upon in prior sessions. While Nigeria has occasionally produced slightly above this quota in recent months—reaching averages of around 1.5 to 1.64 million bpd including condensates—the formal cap provides predictability for the nation’s key revenue source. Analysts note that this quota aligns with efforts to balance supply amid seasonal demand patterns, though Nigeria continues to target higher output through domestic initiatives.
In related developments, Ekiti State has made history by becoming the first in the federation to domesticate the Nigeria Tax Administration Act. Governor Biodun Oyebanji signed the Ekiti State Revenue Administration Law 2025 into effect this week, aligning the state’s revenue framework with recent national tax reforms. The new law repeals the previous 2019 internal revenue legislation, grants the Ekiti State Internal Revenue Service (EKIRS) exclusive collection authority, introduces mandatory electronic payments, and promotes transparency to eliminate double taxation and unauthorized collections. Officials from the Joint Tax Board praised Ekiti’s leadership, expressing hope that other states will follow suit to enhance professionalism in subnational revenue administration.
On the broader economic front, Nigeria showed signs of recovery throughout 2025. Real GDP growth accelerated, reaching 3.9% year-on-year in the first half of the year—driven by services, non-oil industries, agriculture, and improved oil output—before moderating slightly in later quarters. The naira exchange rate achieved relative stability, trading in the range of ₦1,450–₦1,600 per dollar by year-end, a marked improvement from prior volatility. Foreign exchange reserves also strengthened significantly, surpassing $46 billion in recent months, bolstered by higher non-oil exports, remittances, and reduced import pressures.
These macroeconomic gains have supported a current account surplus and improved investor confidence. However, challenges persist, with high food inflation and widespread poverty continuing to affect millions of households. The World Bank estimates that approximately 139 million Nigerians lived in poverty in 2025, underscoring the need for reforms to translate into broader improvements in living standards.
As the year closes, these updates highlight a mixed outlook: stabilization in key indicators offers hope, but inclusive growth remains critical for sustainable progress.
OPEC Locks Nigeria’s Oil Quota at 1.5 Million Barrels Per Day Until 2026 Amid Economic Recovery Signs
