Nigeria's oil production reached a peak of 1.78 million barrels per day (mbpd) in July 2025, which is the highest level recorded for the year.
This increase offers a significant reprieve for the country's finances, helping to reduce a revenue shortfall of over $5.3 billion experienced in the first half of the year.
The higher output in July, which averaged 1.78 mbpd, surpassed the country's average production of 1.7 mbpd in June.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) attributes this production recovery to enhanced security operations and a multi-stakeholder effort to boost oil production.
The country's 2025 budget was benchmarked on a production target of 2.06 mbpd and a crude oil price of $75 per barrel.
However, in the first six months of the year, Nigeria consistently underproduced, leading to a cumulative shortfall of approximately 70.67 million barrels and the resulting revenue gap.
Oil and gas are critical to Nigeria's economy, accounting for a substantial portion of government revenue and foreign exchange earnings.
The recent increase in output is seen as a positive step toward stabilizing the economy and meeting the government's fiscal projections.