Nigeria Lost N74.51bn Oil Revenue In December, says OPEC

new monthly report of the Organization of the Petroleum Exporting Countries has shown a plunge in Nigeria’s crude oil production in December 2021, triggering a loss of about N74.51bn in oil earnings.

According to OPEC data, Nigeria produced an average of 1.19 million barrels per day in December, down from 1.26 million bpd in November, based on direct communication.

This means an average daily loss of 78,000 barrels was recorded in December, translating to a total loss of 2.42 million barrels in the month.

In December, the average price of Brent, the international benchmark against which Nigeria’s oil is priced, was $74.17 per barrel, according to figures from countryeconomy.com.

At the official exchange rate of N415.45 to a dollar, it implies that the loss of 2.418 million barrels of crude oil in December reduced the country’s earnings by about N74.51bn.

Further analysis of OPEC’s latest report indicated that in the first quarter of 2021, Nigeria’s oil production stood at an average of 1.312 million bpd.

This moved up to an average of 1.34 million bpd in Q2, but the momentum could not be sustained, as the country’s crude oil production dropped to 1.27 million bpd in Q3.

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