$2.5bn lost monthly to oil production – NECA

The Nigeria Employers’ Consultative Association has stated that the country has been losing about $2.5bn monthly for failing to meet the 1.8m barrel per day crude oil production allocation by the Organisation of Petroleum Exporting Countries.

In a statement, the Director-General of NECA, Adewale-Smatt Oyerinde, claimed that though the country’s crude oil production grew by 4.2 per cent to 1.23 million barrels per day in December 2022, it was still short.

He stated still a 0.57 million barrel per day shortfall, which translated to about $2.5bn monthly loss for the country.

According to him, oil theft seemed to continue unabated and the unsustainable subsidy on petroleum products had joined to reduce the government’s revenue, leading to absurd debt accumulation.

He said that misalignment between the fiscal and monetary policies, which were deflating investors’ confidence, has made the country unattractive for Foreign Direct Investments.

“Crude oil production grew in the month of December 2022 by 4.2 per cent month-on-month to 1.23m barrel per day, but remained significantly short of the 1.8m barrel per day allocated by OPEC to the nation, amounting to about $2.5bn loss monthly at an average of $100pb,” he remarked.

Speaking further, the NECA boss expressed the need for the government, especially the incoming one to demonstrate the political will to implement policies that will drive the economy back on a growth trajectory.


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