Exciting Days Ahead for Tinubu’s Govt, As Nigeria’s Crude Oil Production Hits 3-Month High

• Nigeria's oil production has finally improved, providing a major boost to the administration of President Bola Tinubu
• The good news is that Nigeria can now sell more oil to its customers and attract more dollar income
• This revenue is badly needed for the new administration to implement its various programs aimed at alleviating Nigerians' suffering

Nigeria's crude oil production has increased to 1.38 million barrels per day in August 2023, according to the latest data from Platts survey by S&P Global Commodity Insights.

The figure indicates a production increase of 60,000 barrels per day compared to 1.32 million published in July 2023.

The development will be cheering news for President Bola Tinubu, who has consistently urged the NNPC to boost production.

Oil is Nigeria's major source of foreign income, and with soaring oil prices, the improvement in production will mean more revenue for the government.

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In the second quarter of 2023, the National Bureau of Statistics revealed that petroleum oils and oils obtained from bituminous minerals, worth N5.58 trillion in crude sales, were reported."

Why has Nigeria's oil production increased?

Nigeria's crude oil production improved thanks to the resumption of activities at the Forcados terminal after an underwater leak disrupted loading for a month, Businesspost reports.

While the improvement is something to cheer about, Nigeria is still far from reaching its expected 1.742 million barrels production quota set by the Organization of the Petroleum Exporting Countries and its allies (OPEC+).

In May, June, and July, OPEC reported oil production figures of 1.28 million barrels per day, 1.29 million barrels per day, and 1.25 million barrels per day, respectively.

Expert reacts

Speaking to Legit.ng a Lagos-based economist Kunle Ademoye, is not too excited about the rising oil prices.

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He explained that Nigeria's low oil production and various oil swap deals by the NNPC make the rising oil price bad news.

"Nigeria should have one of its best times with oil price close to $100 but it is not so because of weak production.

"The 2023 budget oil price benchmark is $70 per barrel, with an oil production of 1.6 million barrels daily.

"What do we have? NNPC reporting 1.1 mbpd or 1.31 mbpd, a shortfall of over 300,000 barrels per day at a time when the oil price is nearing $100. It is a big loss."

Nigeria sold N21tn worth of crude oil in 2022

Meanwhile, in another report, Legit.ng revealed that Nigeria sold crude oil in 2022 for N21.09 trillion, according to the NBS.

The sales were a 46.41% rise over the N14.41 trillion in sales reported in 2021. NBS included sales in its fourth quarter international trade report, which Legit.ng downloaded from its website.

According to research, Nigeria's N26.79 trillion total exports in 2022 comprised 78.74% of crude oil exports.

Source: Legit.ng