Nigeria’s Oil Production Drops To New Low, As Price Averages $117.25

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), in its latest data released, disclosed that oil output dropped to an average of 1.24 million barrels per day (bpd) from 1.25 million in February 2022.

According to the regulatory commission, the data released represents a 0.80 per cent decrease from the previous month, representing the lowest production capacity so far in the year.

NUPRC disclosed that Nigeria is producing below 1.4 million barrels per day in 2022, failing to meet its Organisation of Petroleum Exporting Countries (OPEC) quota of about 1.8 million bpd.

Nigeria might have lost N900 billion in oil earnings for the month if the March oil price figure is used.

Statista noted that the average price of one barrel of Brent crude oil, the benchmark for Nigeria’s oil, was 117.25 US dollars in March 2022 as a result of the Russia-Ukraine war.

For such a price, Nigeria’s revenue from the oil boom should have been N2.7 trillion ($117.25 x 1.8mbpd x 31), however, due to the country’s failure to reach the OPEC quota, just N1.8 trillion in oil revenue was expected, barring other complicating factors.