Nigeria’s oil production drops to new low, as price averages $117.25

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) oil output dropped to an average of 1.24 million barrels per day (bpd) from 1.25 million in February 2022.

NUPRC disclosed this in its latest crude oil and condensate production data for March 2022.

According to the NUPRC figure, this represents a 0.80 per cent decrease from the previous month — representing the lowest production capacity so far in the year.

Read also: More headaches for Nigeria’s economy as oil production crashes to 1.15mbd

The country is producing below 1.4 million barrels per day in 2022, failing to meet its Organisation of Petroleum Exporting Countries (OPEC) quota of about 1.8 million bpd.

Using the March oil price figure, Nigeria might have lost N900 billion in oil earnings for the month.

According to Statista, the average price of one barrel of Brent crude oil, the benchmark for Nigeria’s oil, was 117.25 US dollars in March 2022 as a result of the Russia-Ukraine war.

For such a price, Nigeria’s revenue from the oil boom should have been N2.7 trillion ($117.25 x 1.8mbpd x 31), however, due to the country’s failure to reach the OPEC quota, just N1.8 trillion in oil revenue was expected, barring other complicating factors.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now