Nigeria’s Oil Revenue Surges as Crude Production Rises

Recent data from Nigeria’s oil production and revenue have revealed a surge in the country’s oil earnings.

Crude oil earnings increased by N449.93 billion during the months of December 2023 and January 2024, according to the latest information available.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is yet to release oil production figures for February 2024.

However, data so far indicates a consistent upward trend in Nigeria’s oil output during December 2023 and January 2024.

In December 2023, the country’s crude oil production (excluding condensates) saw a notable increase of 3.88 million barrels compared to the previous month.

With the average cost of Brent crude at $77.63 per barrel, this boost in production translated to an additional $301.2 million, equivalent to N244.79 billion at the official exchange rate of N812.7/$ in December 2023.

Further, January 2024 witnessed an additional 2.81 million barrels of crude oil production compared to December 2023, with Brent crude averaging at $80.12 per barrel.

Consequently, the Federal Government increased its crude oil earnings by $225.14 million in January, equivalent to N205.14 billion at the average official exchange rate of N911.19/$.

The cumulative effect of the increased earnings in December 2023 (N244.79 billion) and January 2024 (N205.14 billion) shows a substantial additional revenue of N449 billion during the two-month period.

Nigeria’s crude oil production remains a focal point for economic growth, with the NUPRC setting a new target of 2.5 million barrels per day to enhance the country’s foreign exchange reserves.

The Chief Executive of NUPRC, Gbenga Komolafe, emphasized the commission’s commitment to implementing the Petroleum Industry Act for sustained development and prosperity, offering potential investment opportunities for the nation.