The Nigerian government has lost about N500.6bn from the sale of crude oil between January and May this year.
It was gathered on Wednesday that the crash in revenue was due to the slump in the country’s oil production, as it tumbled by 11.63 million barrels during the review period. Data obtained from different reports of the Organisation of Petroleum Exporting Countries (OPEC) showed that the country produced 1.399 million barrels of crude oil daily in January, translating to 43.369 million barrels in the entire month. This, however, nose-dived to 1.024 million barrels per day in May, according to crude oil production figures based on direct communication as contained in OPEC reports, indicating a total production of 31.744 million barrels in May 2022. The difference between January and May figures implies that Nigeria’s oil production crashed by 11.63 million barrels within the five-month period. On the monetary value of the lost oil volumes, data from Statistica, a globally renowned statistical firm, showed that Nigeria had been losing billions of naira monthly due to the persistent plunge in its oil production. According to The Punch, figures obtained from Statistica showed that in January, February, March, April and May 2022, the average prices of Brent, the global benchmark for crude, were $86.51/barrel, $97.13/barrel, $117.25/barrel, $104.58/barrel and $113.34/barrel respectively. This gives an overall average of $103.76/barrel for crude oil during the five-month period. With an overall average of $103.76/barrel and 11.63 million barrels of crude lost between January and May, it implies that Nigeria’s oil revenue crashed by $1.21bn (N500.6bn at the official exchange rate of N415/$) during the period under review. Meanwhile, additional findings by our correspondent indicated that the nation’s oil production kept moving southwards since January this year. Figures from OPEC reports showed that while the country produced 1.399 million barrels per day in January, this crashed to 1.258 million barrels per day in February. The oil production plunge continued in March, as it dropped 1.238 million barrels per day and further went down to 1.219 million barrels per day in April. The worst plunge was recorded in May this year, as the country’s oil production slumped to 1.024 million barrels per day, based on crude oil production figures obtained through direct communication by OPEC. Operators and government officials have repeatedly complained about the crash in Nigeria’s oil production and its impact on the country’s badly hit economy. Vandalism, oil theft, and sabotage, among others, have been thrown up occasionally as the causes of the crash in Nigeria’s crude oil production.
This article was originally published on Naija News