Nigeria’s revenue from the sale of crude oil, excluding condensates, experienced a significant uptick in August 2023. This increase can be attributed to a marginal gain in the production of crude oil, thanks to both international and indigenous operators in the sector.
Data obtained from reliable sources such as the Nigerian Upstream Petroleum Regulatory Commission and the Organisation of Petroleum Exporting Countries (OPEC) has confirmed that oil output from Nigeria showed positive growth in August, in stark contrast to the preceding month.
In August, Nigeria recorded a total crude oil production, excluding condensates, of 36,615,125 barrels. This figure represented a notable increase compared to the 33,761,767 barrels produced in the previous month of July. The data indicated that oil production in August surged by 2,853,358 barrels compared to July.
The World Bank provided additional insights by revealing that the average cost of Brent crude, the global benchmark for oil prices, stood at $86.16 per barrel in August 2023. Correspondingly, figures from Exchange Rates UK, a global analytical firm, reported the average exchange rate of the United States dollar in Nigeria in August to be N767.6. With this context in mind, the additional 2,853,358 barrels of crude oil produced in August translated to a significant boost in Nigeria’s oil earnings, amounting to approximately N188.71 billion for the month.
Further delving into the daily production figures, OPEC disclosed that Nigeria’s oil output increased to 1.181 million barrels per day in August 2023. This data, outlined in their monthly oil market report for September 2023, demonstrated a noticeable rise from the 1.081 million barrels per day recorded in July. It was also mentioned that in May, Nigeria had produced 1.18 million barrels per day, marking an increase from the 0.99 million barrels per day recorded in April.
However, the OPEC report did highlight that even though Nigeria’s oil output appreciated in August, it remained slightly below the 1.249 million barrels per day recorded in June earlier that year.
Taking a broader perspective, an analysis of the report indicated that Nigeria averaged a daily oil production of 1.144 million barrels in the second quarter of 2023. This figure was notably lower than the 1.277 million barrels per day output achieved in the preceding quarter.
Nigeria’s oil output has faced challenges in recent times, with fluctuations despite the marginal rise in August. Operators and industry stakeholders have called for concerted efforts to further boost oil production, aiming to secure more foreign exchange for the country.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, emphasized the potential consequences of the declining oil output, labeling it as a concerning trend.
The increase in Nigeria’s crude oil production in August 2023 holds promise for the country’s economy, potentially alleviating some of the challenges posed by previous declines. The government and industry players must work together to sustain and build upon this positive momentum.