Nigeria oil sector projected to grow by 12.55% in 2024

The Nigeria Oil sector will experience growth by 12.55 per cent year-over- year, a leading Financial Services group, Cordros Capital Limited has projected.

The financial service firm stated this in its economic analysis, forecasting an increase in Nigeria’s Gross Domestic Product, GDP growth in 2024.

It added that the country’s GDP in 2024 will be higher than 2023 owing to a recovery in crude oil production.

“In 2024FY, we expect real GDP growth to settle higher than in 2023FY as we estimate that the oil sector’s growth will increase faster, in line with a recovery in crude oil production, amid the favourable base effects from the prior year.

“For 2024, we expect the price of Brent crude oil will average USD83.00/bbl. Oil consumption growth is expected to temper in 2024FY, growing by 1.4% y/y, as the substantial demand from China flattens.

“We expect oil production in 2023FY to settle at the same level as growth, but also grow at a slower pace of 1.0% y/y in 2024FY.

“This view is based on our expectations of no escalation of the Middle East conflict and slightly higher output from both OPEC+ and non-OPEC+ producers,” the firm’s statement reads.