In August 2023, Nigeria experienced a boost in its oil revenue, with a notable increase of N188.7 billion. This surge was attributed to a modest rise in crude oil production, involving both international and domestic operators in the industry.
Thank you for reading this post, don't forget to subscribe!Data collected from the Nigerian Upstream Petroleum Regulatory Commission and the Organisation of Petroleum Exporting Countries (OPEC) confirmed that Nigeria’s oil output had expanded in August, surpassing the previous month’s figures. Specifically, Nigeria extracted a total of 36,615,125 barrels of crude oil (excluding condensates) in August, a significant rise from the 33,761,767 barrels produced in July. This increase marked a difference of 2,853,358 barrels between the two months.
In August 2023, the average cost of Brent crude, the global benchmark, was reported to be $86.16 per barrel, according to World Bank data. Exchange Rates UK, a global analytical firm, recorded the average exchange rate of the United States dollar in Nigeria for the same month as N767.6. Consequently, the additional production of 2,853,358 barrels of crude oil in August resulted in Nigeria’s oil earnings surging by approximately N188.71 billion during that period.
Regarding daily crude production figures, OPEC disclosed that Nigeria’s oil output had climbed to 1.181 million barrels per day in August. This was detailed in their monthly oil market report for September 2023. While there was an increase from 1.081 million barrels per day in July, it remained below the peak production of 1.249 million barrels per day recorded in June of the same year.
Further analysis of the OPEC report revealed that Nigeria’s oil production averaged 1.144 million barrels per day during the second quarter of 2023. This figure was lower than the 1.277 million barrels per day output in the previous quarter. Despite the incremental progress observed in August, Nigeria’s oil output had faced a decline in recent times. Industry operators have called for concerted efforts to bolster production, aimed at generating more foreign exchange for the country.
Billy Gillis-Harry, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria, expressed concern about the drop in oil output, emphasizing the need for investigation and concerted action. He mentioned the potential economic challenges if this trend continues but remained optimistic about positive changes due to new oil discoveries.
Clement Isong, the Executive Secretary of the Major Oil Marketers Association of Nigeria, urged the Federal Government to address crude oil theft, which not only hindered Nigeria from meeting its OPEC production quota but also affected the availability of dollars for imports. He highlighted the importance of resolving security issues in the Niger Delta region to increase daily crude oil output, which would, in turn, alleviate dollar shortages in the market.
