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Nigeria loses N65.22bn in oil income in October as production problems reappear

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For a country hit by a revenue and FX shortfall, the Nigerian government continues to miss out on gains of rising oil prices as oil production challenges continue to hamper foreign exchange earnings.

According to figures from the Organization of Petroleum Exporting countries, Nigeria again failed to meet its production quota of 1.7 million barrels per day (excluding condensate) in October 2021.

OPEC Data showed Nigeria only produced 1.44 million barrels in October, compared to 1.45 million barrels per day reported in September 2021.

The drop in Nigerian oil output during the month of October resulted in a loss of $5.1 million per day, or $158 million (N65.22 billion), based on the average oil price of $83.5 a barrel for the month.

READ ALSO: Nigeria’s external reserves grow by $1.96bn in 19 days, on improved crude oil price

Using an average 1.5 million daily production benchmark, data obtained from OPEC report titled “Crude Oil Production in OPEC Member Countries: Deviation from Required Production Levels,” showed Nigeria has lost 44.42 million barrels of crude between October 2020 and September this year.

Breakdown of this year’s production shortfall showed daily production output dropped by181,000bpd in January; 43,000bpd in February; 43,000bpd in March; 63,000bpd in April.

While 124,000bpd; 155,000bpd and 201,000bpd were recorded in May, June, and July respectively, and a massive 301,000bpd in August.

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