Nigeria Misses Out on N2.2trn Oil Revenue in 4 Months as NNPC Fails to Produce Enough Crude Oil for Export

Nigeria Misses Out on N2.2trn Oil Revenue in 4 Months as NNPC Fails to Produce Enough Crude Oil for Export

  • Data has revealed the huge revenue Nigeria has lost in the last four months due to its failure to produce enough crude oil for sale
  • According to data compiled by the Organization of Petroleum Resources, Nigeria failed to produce over 53 million barrels of oil for sale
  • The crude output gap cost Nigeria a stunning N2.2trn in projected oil earnings enough to clear all the country's debts to India

Nigeria has missed out on a huge oil revenue windfall over the failure to produce and export 53 million barrels of oil allocated by the Organization of Petroleum Resources(OPEC) from January to April.

These huge losses are coming at the back of rising oil prices which crossed $100 per barrel on February 24, 2022.

The Minister of State Petroleum Resources, Chief Timipre Sylva had in March blamed the lack of investment by International Oil Companies (IOCs) for the country’s inability to meet its OPEC quota, Vanguard reported.

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Nigeria, crude oil production
Snapshot of Nigeria's oil production Credit: OPEC
Source: Facebook

While experts and players have believed theft is the reason Nigeria's oil production figure is struggling.

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Monthly breakdown of oil revenue missed

Data from OPEC showed in January, Nigeria got approval from OPEC to produce 1.683 million barrels per day which comes to 52.1 million for the month of January.

However, the Nigerian National Petroleum Corporation could only report pumping 1.399 mb/d which is a total of 43.3 million for the month, leaving a production shortfall of 8.8 million for the month.

In January, oil prices averaged $86.51. What this means is that Nigeria lost $761 million (N300.13bn) in oil sales revenue.

February

Production shortfall got worst in February as Nigeria clocked just 36.4 million barrels of oil in the month which is 1.258m/d production against the target of 51.6 million monthly or 1.78 million barrels per day leaving a gap of 19.1 million.

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The 19.1 million come to a total loss of $1.83 billion(N764bn) as oil price averaged at $97.13 per barrel.

March

Nigeria also missed its production target in March as it only revealed 1.238 mb/d or 38.37 million during the month.

This is lower than the country's OPEC quota of 1.735 million barrels a day or 53.7 million in a month leaving a shortfall of 15.3 million.

In the month of March, oil prices averaged at 117.25 per barrel meaning the country lost $1.79 billion( N739bn) in expected revenue.

April

It is the same story in April as of Monday 2 May 2022, OPEC reveals that for the fourth time, Nigeria failed to meet its oil production quota.

OPEC noted that Nigeria produced 1 .39 million barrels per day (41.7 million in a month) as against the expected 1.735 mb/d. (52.2 million in a month) leaving a gap of 10.5 million barrels of oil.

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If the missed 10.5 million was produced and sold it could have earned Nigeria over $1.1bn (N453.7 billion)

What the money lost could do for Nigeria

The N2.2 trillion lost revenue over low production could have helped Nigeria clear debts of Germany, India, and Japan.

According to data from the Debt Management Office, Nigeria at the end of December owes five countries a total of 4.46 billion dollars.

Out of which, $71.79 million is to Japan, $33.48 million to India and Germany $164.27 million which comes to a total of $269.5 million (N1.11 billion).

Nigeria loses 80% of oil production to theft - Pastor Adeboye

Similarly, Pastor Enoch Adeboye of the Redeemed Christian Church of God (RCCG), recently claimed that 80% of the country’s oil production is lost to theft.

The revered cleric said this on Sunday, April 3, adding that 90% of oil revenue is used to service debt in Nigeria.

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His words:

“More than 80 percent of all the oil we are producing is been stolen and nobody has denied it, it came from the government."

Source: Legit.ng

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