Following improvements in security in the Niger Delta area, Nigeria is making headway in its oil revenues as it brought in an additional N363 billion from crude oil sales in the months of October, November, and December 2022.
According to data acquired from the Federal Ministry of Petroleum Resources on Sunday, the nation’s oil production increased by 1.014 million barrels per day in October, up 0.077 million barrels per day from the 0.937 million barrels per day output in September.
When compared to the daily output in the month before, October, the nation produced 1.185 million barrels of oil per day in November, representing an increase of 0.171 million barrels per day.
Additionally, oil production increased in December of last year, with Nigeria producing 1.253 million barrels per day (mbpd) in December, up 0.05 million barrels per day from November’s output.
The average price of Brent, the international standard for petroleum, was $93.4 per barrel, $89.62 per barrel, and $76.42 per barrel in October, November, and December of 2022, according to data collected from Statistica and Countryeconomy, two international economic and statistical businesses.
In October, Nigeria’s oil output increased by 0.077 million barrels per day, or 2.387 million more barrels.
It is implied that the nation made an additional $222.95 million (N101.02 billion, at the official exchange rate of N453.1$), or $93.4 per barrel, of crude oil on average throughout the review month.
Nigeria increased its oil output in November by 0.171 million barrels per day, or 5.13 million barrels, while the average price of crude oil was $89.62 a barrel.
According to this, Nigeria’s oil revenues climbed by $459.75 million (or N208.31 billion at the official currency rate of N453.1/$ used by the Central Bank of Nigeria).
Nigeria produced 1.55 million barrels of oil in December 2022, an increase of 0.05 million barrels per day, at an average price of $76.42 per barrel for Brent.
As a result, at the official exchange rate of N453.1/$, the Federal Government’s earnings from crude oil exports increased by $118.45 million (N53.67 billion) in the last month.
The summation of the monthly revenue rise during the period showed that Nigeria earned an additional N363bn from oil sales within the three-month duration following the improvement in security in the Niger Delta region.
The President, Major General Muhammadu Buhari (retd.), recently ordered security agencies to eradicate crude oil theft and pipeline vandalism in the Niger Delta before May 29, 2023.
He said the order became vital in order to effectively ramp up the country’s oil output, stressing that the Federal Government could no longer tolerate the criminality.
Buhari gave the directive through the Minister of State for Petroleum Resources, Chief Timipre Sylva, while addressing troops of the Joint Task Force Operation Delta Safe in Effurum, Delta State, and Port Harcourt, Rivers State.
Sylva was quoted in a statement issued in Abuja by his media aide, Horatius Egua, as saying, “Mr. President has mandated us to eradicate crude oil theft. He has directed that no litre of crude oil should be stolen across the country again, especially in the South-South.
“He wants crude oil theft completely eliminated by May 29, 2023, as one of the legacies of his government. This is the message from Mr President. We are not where we want to be, but we are happy at what we are seeing.”
Prior to the renewed efforts of the Federal Government in tackling the menace of crude oil thieves, the nation’s daily crude oil production was about 900,000 barrels per day.
But with the recent improvements in security efforts, there has been an increase in oil output, as production has risen to about 1.5 million barrels per day, according to the statement.
Sylva added, “I am happy to hear that morale is high here. We were here a few months ago to hand over the mandate of Mr. President to you and that is to ensure that there is zero tolerance for crude oil theft in the region.”
The enhanced output in oil production has increased the country’s earnings from crude oil sales, though Nigeria still spends billions of naira as subsidy of Premium Motor Spirit, popularly called petrol.
