By John Ikani
Nigeria’s revenue from crude oil sales, excluding condensates, saw a noteworthy increase of N188.7 billion during August 2023.
The uptick can be attributed to a slight rise in the production of crude oil, thanks to both international and indigenous players in the sector.
Data gleaned from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Organization of Petroleum Exporting Countries (OPEC) indicate that Nigeria’s oil output registered an upswing in August compared to the previous month.
During August, the nation successfully extracted a total of 36,615,125 barrels of crude oil (excluding condensates). This figure surpassed the 33,761,767 barrels produced in the preceding month of July. Essentially, August witnessed an increase of 2,853,358 barrels in oil production compared to July.
The World Bank reported that the average cost of Brent crude, the global benchmark, was $86.16 per barrel in August 2023. Furthermore, Exchange Rates UK, a global analytical firm, indicated that the average exchange rate of the United States dollar in Nigeria during August stood at N767.6.
Consequently, by producing an additional 2,853,358 barrels of crude oil in August, Nigeria’s oil earnings saw an uptick of approximately N188.71 billion during that period.
Regarding daily production figures for crude, OPEC disclosed that Nigeria’s oil output reached 1.181 million barrels per day in August this year. In its recent monthly oil market report for September 2023, OPEC highlighted that Nigeria’s oil production had risen from 1.081 million barrels per day in July to 1.181 million barrels per day in August.
In May, the country had achieved a production rate of 1.18 million barrels per day, surpassing the 0.99 million barrels per day recorded in the previous month of April.
However, data from the OPEC report reveals that while Nigeria’s oil output improved in August, it remained below the 1.249 million barrels per day recorded in June of the same year.
A deeper analysis of the report unveiled that during the second quarter of 2023, Nigeria averaged 1.144 million barrels per day, which was less than the 1.277 million barrels per day output recorded in the preceding quarter.
Despite the marginal rise in August, Nigeria’s oil production has been grappling with a decline lately. Industry operators have called for collective efforts to bolster oil output and generate more foreign exchange for the country.