Nigeria lost N101 billion crude oil proceeds after the country’s production plunged by 2.3 million barrels in July 2022 when compared to what the nation earned in June.
Organisation of Petroleum Exporting Countries (OPEC) gave the figure in its latest Monthly Oil Market Report for August 2022, yesterday.
Explaining that crude oil production figures based on direct communication, indicated that Nigeria’s output dropped by an average of 74,000 barrels per day in July, the report showed that average cost of Brent crude, the global benchmark for oil, during the month under review was $105.12/barrel.
Similarly, by losing 2.3 million barrels in July this year, it means Nigeria’s oil earnings fell by about $241.1million or N101.13billion (at the official exchange rate of N419.37/$) in the month under review, OPEC also said Nigeria’s oil production in June 2022 was 1.158 million barrels per day, but this dropped to 1.084 million barrels per day in July while the country produced 1.024 million barrels per day in May.
The Federal Government, operators and experts have consistently fingered crude oil theft in the Niger Delta as the major reason for Nigeria’s poor output and its continued failure to meet the monthly oil production quota approved by OPEC.
Commenting on the report, Chief Executive Officer of Centre for Promotion of Private Enterprise, Dr. Muda Yusuf while speaking on a pike on security issues in the country, blamed it on the challenges in the oil sector.
According to him, this has continued to discourage investors in the sector, leading to lower production of crude oil and lower earnings for Nigeria despite the increased cost of crude.
“Investors in the oil and gas sector continue to lament the challenges posed by insecurity, oil theft, unstable policies and inappropriate fiscal regimes. The downstream sector has continued to be weighed down by the pricing regimes and the regulatory environments which have continued to dim the growth prospects in the sector,” he said.