An examination of the most recent oil production data given by the Federal Government revealed that Nigeria’s crude oil revenues increased to over N1.68tn in June 2023 as a result of an increase in the country’s output last month.
According to information received on Thursday from the Nigeria Upstream Petroleum Regulatory Commission’ (NUPRC)s June 2023 crude oil production report, the nation’s daily oil output increased to 1,248,960 barrels during the review month. Nigeria produced 1,183,691 barrels per day of crude oil in May, which is 65,269 barrels less than it did in June.
According to the updated data, the total amount of crude oil produced in June was 37,468,798 barrels, an increase from the 36,694,427 barrels that were produced in May. This suggested that Nigeria’s oil output increased by 774,326 barrels in June when compared to what it produced in May.
According to World Bank data, a barrel of crude oil will cost on average $74.89 in June 2023. It was inferred by providing a higher production of 37,468,798 in June that the nation made around $2.81 billion from the commodity in June.
According to information from dollar/naira spot exchange rates for 2023, this indicated that the Federal Government’s oil revenues in June increased to N1.68 trillion at an average exchange rate of N600.43/$.
When the average price of crude oil and the exchange rate during that month were $75.70 per barrel and N461.4 per dollar, respectively, it was nearly N1.28 trillion.
The Central Bank of Nigeria combined the country’s currency rates into the Investors and Exporters window on June 14, 2023, enabling market forces to set the rate. As a result, the average exchange rate of the dollar climbed in June.
Nigeria’s oil production has been oscillating throughout the last year; in September 2022, the nation’s oil output reached a low of 0.937 million barrels per day. This was attributed by the federal government and oil industry participants to widespread petroleum theft in Nigeria’s oil-rich Niger Delta.
Additionally, the scenario resulted in financial losses for the nation, foreign oil corporations operating in Nigeria, as well as local business owners in the sector.
But the country’s oil output started improving after September, following concerted efforts by security officials and oil operators, as industry figures showed that crude production rose to 1.014 million barrels per day in October.
This indicated an increase of 0.077mbpd when compared to the 0.937mbpd output in September. In November, the country pumped 1.185mbpd crude, representing an increase of 0.171mbpd when matched against what was produced in October.
The rise in output continued in December last year, as Nigeria produced 1.253mbpd in that month, indicating an increase of 0.05mbpd when compared to its output in November.
The 1.258mbpd oil production in January 2023 was about 23,000bpd higher than the 1.235mbpd crude oil output in December 2022.
The momentum was sustained in February, with an output of 1.31mbpd. But the volume dropped to 1.27mbpd in March, putting an end to the seven-month run in Nigeria’s oil output. It further went down in April to 0.998mbpd.
Latest data from the NUPRC, on Thursday, showed that the rise in oil production in May was sustained in June, as the country pumped 1,183mbpd in May, while its output rose to 1.25mbpd in June.
