The Federal Government has disclosed a significant rise in oil earnings amounting to N450 billion over a span of two months, attributed to increased oil production and favorable global oil prices.
In December 2023, Nigeria saw a boost in oil production by 3.88 million barrels, resulting in an additional revenue of $301.2 million, equivalent to N244.79 billion at the official exchange rate of N812.7 per dollar.
Following this, January 2024 witnessed a further surge in oil production by 2.81 million barrels compared to December 2023. With the average cost of Brent crude at $80.12 per barrel in January, the Federal Government’s crude oil earnings increased by $225.14 million, translating to N205.14 billion at the average official exchange rate of N911.19 per dollar.
The cumulative effect of the increased earnings in December 2023 and January 2024 amounted to an additional N449 billion for the Federal Government during the two-month period.
Reports from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicated that oil production volumes rose steadily. In November 2023, total crude oil production (excluding condensates) stood at 37.51 million barrels, while in December 2023, it increased to 41.39 million barrels.
The NUPRC recently set a new crude oil production target of 2.5 million barrels per day for Nigeria, aiming to bolster the country’s foreign exchange reserves. Gbenga Komolafe, the Chief Executive of NUPRC, emphasized the potential for sustainable development and prosperity within Nigeria’s oil and gas reserves, highlighting the opportunities for investment and revenue generation.
Komolafe underscored Nigeria’s diverse energy potentials, including hydrocarbon resources, clean energy technologies, and critical minerals, positioning the country as a beacon of hope for Africa’s economic growth and development.
