Between January and May of this year, the sale of crude oil cost the Nigerian government roughly N500.6 billion.
On Wednesday, it was learned that the decline in revenue was caused by the nation’s oil production, which fell by 11.63 million barrels during the review period.
According to information gathered from several OPEC reports, the nation produced 1.399 million barrels of crude oil each day in January, which amounted to 43.369 million barrels for the entire month.
According to crude oil production data based on direct communication seen in OPEC reports, this, however, plummeted to 1.024 million barrels per day in May, indicating a total production of 31.744 million barrels in May 2022.
The discrepancy in numbers between January and May suggests that during the five-month period, Nigeria’s oil output fell by 11.63 million barrels.
Data from Statistica, a well-known statistical company in the world, revealed that Nigeria had been losing billions of naira each month as a result of the ongoing decline in its oil production.
The Punch reported that statistics from Statistica showed that the average price of Brent, the standard for international crude, was $86.51 per barrel in January 2022, $97.13 per barrel in February 2022, $117.25 per barrel in March 2022, $104.58 per barrel in April 2022, and $113.34 per barrel in May 2022, respectively.
This results in a five-month average price for crude oil of $103.76 per barrel.
It is implied that Nigeria’s oil revenue fell by $1.21 billion (N500.6 billion at the official currency rate of N415/$) during the period under consideration, with a global average of $103.76/barrel and 11.63 million barrels of petroleum lost between January and May.
Further research by our journalist revealed that since January of this year, the nation’s oil production has been declining.
The country produced 1.399 million barrels per day in January, but this fell to 1.258 million barrels per day in February, according to OPEC statistics.
The decline in oil output continued in March, falling by 1.238 million barrels daily, and it further decreased in April, falling to 1.219 million barrels daily.
Based on crude oil production numbers gathered through direct contact by OPEC, the country’s oil production fell to 1.024 million barrels per day in May of this year, marking the greatest decline ever.
Operators and government representatives have frequently voiced their displeasure over Nigeria’s oil output decline and its effects on the nation’s severely weakened economy.
The reasons for the decline in Nigeria’s crude oil production have periodically included vandalism, oil theft, and sabotage, among others.