Good News For Naira as Nigeria Earns N274 Billion From Crude Oil in September
- Nigeria’s crude oil earnings have surged to about N274 billion in September 2023
- The report follows an increase in oil output as the country pumped about 1.7 million in crude oil in September
- Also, the price of the commodity increased to $93.7 per barrel in the international market
PAY ATTENTION: #StartupSouth Awards 2023 Nominated Legit.ng in the category Best Startup Coverage! Your support matters - click to VOTE for Legit.ng for free!
Nigeria’s crude oil revenue soared by more than N274 billion in September 2023 as general crude oil prices hit over $93 per barrel amid the conflict between Hamas and Israel.
The development also comes amid increased crude oil output by Nigeria in September.
Source: Getty Images
Nigeria increases crude oil production as prices soar
Recent data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says Nigeria produced 40,396,863 barrels of crude oil in September.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
The report shows an increase from the 36.6 million barrels of crude oil produced in August, indicating that oil production increased by 3.8 million in September.
Thompson Reuters Institute said that the average price of Brent crude sold for $93,72 per barrel in September.
Nigeria’s oil earnings increased by more than $354.42 million, or N273.8 billion, in September 2023 by pumping an additional 3,781,738 barrels at an average cost of $93.72 per barrel, at the exchange rate of N772.65 per dollar in the month under review.
Nigeria's budget is hinged on crude oil production, Minister says
BusinessDay reports that the Minister of Petroleum Resources (Oil), Heineken Lokpobiri, told journalists that Nigeria’s oil production has moved to around 1.7 million barrels per day, an increase from 1.1 million barrels daily in August.
The Minister said the increase in crude oil and condensate production was due to the government and other sectors identifying sources of the problem confronting crude oil production in the country.
He said:
“We have a sole agenda: to increase crude oil production. Once you increase production, there will be more revenue for Nigeria, which is the recipe for virtually all our problems in this country.
“You know that Nigeria is very dependent on oil. Our budget is always predicated on how many barrels of oil we produce. Although the non-oil sector is thriving, for us to solve our problems, we need to earn enough Forex.”
Nigeria turns to tiny tankers to move crude from creeks
The report comes as one of Nigeria’s most important oil pipelines has been broken for months. Hence, the country resorted to a fleet of small river-going tankers to increase oil production.
Legit.ng reported that Africa’s largest oil producer has begun utilising the tiny ships to transport a new grade of oil, Nembe Creek, up the Niger River Delta and onto an ocean-going boat stationed off the nation’s coast.
According to export loading programmes, Nigeria is slated to load roughly 65,000 barrels per day of the new Nembe Creek grade this month and the following. Most of the decrease in flows from Bonny would be replaced by that, though only partially.
This is part of the effort by the government to increase output before OPEC votes on new oil production restrictions.
Experts ask Nigeria to invest in monitoring systems to check oil theft
Experts have predicted increased earnings for Nigeria following relative peace and reduced crude oil theft in the Niger Delta.
According to energy policy analyst Pius Ubi, the problem with earnings from crude oil has been an infrastructure problem.
He said Nigeria needs a robust monitoring system to scrutinize theft and leakages.
He cited state-sponsored theft for continued oil leakages in the country.
“You are sometimes confronted with disgraceful reports that security operatives and other state actors are involved in oil theft. That makes fighting theft and vandalism challenging.
“In Saudi Arabia, every drop of crude oil is monitored and accounted for. They have robust mechanisms for checking and containing theft and leakages. Oil is their primary source of revenue, just as it is for Nigeria.
So, they pumped billions of dollars into infrastructure that could make it easy to track and account for oil earnings. Nigeria can take a cue from that,” he said.
OPEC says new refineries coming up in Nigeria to rival Dangote, lift sales; one Produces 20,000bpd
Legit.ng reported that the Organisation of Petroleum Exporting Countries (OPEC) has revealed that Nigeria is about to witness the establishment of small modular refineries with 20,000 bpd capacity in the medium term.
The group revealed this in its World Oil Outlook, launched in Saudi Arabia.
The Outlook says Africa will see a medium-term distillation capacity of 1.2 million barrels daily.
Source: Legit.ng
