Nigeria lost about N289.6bn crude oil revenue in November 2023 following a plunge in the country’s oil output last month, when compared to what it pumped in the preceding month of October.
An analysis of the country’s latest crude oil production
figures, obtained from the Nigerian Upstream Petroleum Regulatory Commission in
Abuja on Sunday, showed that Nigeria produced 41,867,775 million barrels of
crude (excluding condensates) in October.
But this plunged to 37,508,971 barrels in November,
representing a decline of 4,358,804 million barrels when matched against what
the country produced in October.
The average price of Brent, the global benchmark for crude,
in November 2023 was $82.94/barrel, according to Country Economy, an
international statistical firm.
By losing 4,358,804 million barrels of crude in November,
the value of oil that was lost by Nigeria in the month under review was about
$361.52m.
A global rates firm, exchangerates.org, stated that the
average exchange rate of the naira against the United States dollar in November
was N801/$. This implies that Nigeria’s oil revenue in November crashed by
about N289.6bn.
Meanwhile, further analysis of the NUPRC report showed that
in January, February, March, April and May 2023, Nigeria’s crude oil outputs
(excluding condensates) were 39,266,420 million barrels, 36,182,712 million
barrels, 39,268,847 million barrels, 30,131,770 million barrels and 36,869,280
million barrels respectively.
For the months of June, July, August and September 2023, the
country pumped 37,827,842 million barrels, 33,761,767 million barrels,
36,615,125 million barrels and 40,396,863 million barrels respectively.
But despite the crash in oil output, the Federal Government
insisted that Nigeria would meet and surpass the 2024 crude oil budget
benchmark of 1.7 million barrels per barrel.
The Minister of State for Petroleum Resources (Oil), Senator
Heineken Lokpobiri, had insisted on Tuesday that the country would meet its oil
production benchmark in the 2024 budget of 1.7mbpd.
Lokpobiri had also said the country has the capacity to
increase crude oil production to two million barrels per day.
“The success of the upstream sector will determine the
success of the midstream and the downstream sectors. And as a government, we
are willing to sustain that engagement with the stakeholders so that in the
year 2024 and beyond, we will together ensure that we produce not just the 1.7
million bpd that we need for our budget but ensure that we produce what is
needed to meet the local demand,” the minister had stated.
The minister had also stated in a post on his X handle that
Nigeria was committed to its membership of the Organisation of Petroleum
Exporting Countries.
The dispute over crude oil production quota between OPEC and
a few of its members eventually made Angola to exit the global oil cartel on
Thursday.
But Lokpobiri reaffirmed “Nigeria’s unwavering commitment to
OPEC as we navigate the dynamic landscape of the global energy sector.”
He added, “Our collaboration within the organisation remains
pivotal in fostering stability and sustainability in the oil market. We are
resolute in our dedication to OPEC’s objectives while actively engaging with
the organisation to address concerns that resonate not only within our nation’s
borders but across the entire continent.
“Nigeria stands ready to contribute constructively to the
ongoing dialogue, ensuring that the unique challenges and opportunities of our
region are duly recognised and addressed.”
He maintained that as “the Minister of State for Petroleum
Resources, I am committed to fostering a collaborative spirit within OPEC that
goes beyond our national interests, recognising the collective responsibility
to nurture a resilient energy landscape for the benefit of all member nations
and the world at large.”