Oil Production Decline Causes Nigeria to Lose N249bn in July

• Data shows that Nigeria lost roughly four million barrels of oil between June and July
• Nigeria’s oil production was 1.08 million barrels per day in July 2023
• This follows a recent report that the country lost its position as the biggest oil producer in the continent

The latest oil production numbers have shown that Nigeria lost almost N249 billion in crude oil revenue in July as a result of a decline in oil production of more than four million barrels in the same month.

The entire oil production of the nation fell to 33.5 million barrels in July from June’s 37.5 million barrels, according to information acquired from the Nigerian Upstream Petroleum Regulatory Commission.

Legit.ng earlier reported that Nigeria’s crude oil revenues increased to over N1.68 trillion in June 2023 as the country shored up its output last month, according to an analysis of oil production figures released by the federal government.

Meanwhile, a recent report shows that Nigeria’s oil production was 1.08 million barrels per day (mbpd) in July 2023, indicating a 13.8% decline in crude production compared to the 1.249 million barrels per day reported in June 2023, hence losing its position as the biggest oil producer in the continent.

Four million barrels lost in one month

The country lost roughly four million barrels of oil between June and July, according to data. Punch reported that several issues, including pipeline vandalism and crude oil theft, have been mentioned as contributing to the drop in Nigeria’s oil production.

The average price of Brent, the world‘s preferred benchmark for crude oil, was $80.1 a barrel in July 2023, per data from the World Bank.

Based on the four million missing barrels of crude oil, it is assumed that Nigeria lost almost $320.4 million during the review month.

Data from spot exchange rates for the US dollar to the Nigerian naira in 2023 show that the average local currency conversion rate in July was N777.3/$.

It is inferred that Nigeria lost about N249 billion during the month under review when the $320.4 million is multiplied by the average exchange rate in July.

The nation produced 1.25 million barrels of crude oil per day in June, but that amount decreased to 1.08 million barrels per day in July, according to figures from the NUPRC.

In May, the nation produced 1.18 mbpd, which was more than the 0.99 mbpd production number noted in the month before, April.

NNPC Tells Nigerians to Get Ready for Stronger Naira, Cheap Fuel After Securing $3BN Emergency Loan

Legit.ng earlier reported that the Nigerian National Petroleum Corporation (NNPC) Limited has announced that it has successfully secured $3 billion in crude-for-cash funding from the African Export-Import Bank (Afreximbank).

NNPC hopes the loan will support the naira needs to stabilise against the dollar in the foreign exchange market.

NNPC Limited, in a statement, said, “The $3 billion loan will provide some immediate disbursement that will enable the NNPC Ltd to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market”.

Source: Legit.ng