In a positive development for Nigeria’s economy, the country’s crude oil production witnessed a significant rise in May 2023. According to the latest Monthly Oil Market Report from the Organisation of Petroleum Exporting Countries (OPEC), Nigeria’s crude oil output increased by 6.73 million barrels, reaching a total of 36.7 million barrels for the month. This surge in production led to a cumulative revenue of approximately N1.27tn.
OPEC’s report revealed that Nigeria’s crude oil production figures, obtained through direct communication, indicated that the country produced 999,000 barrels per day in April. However, this figure jumped to 1,184,000 barrels per day in May 2023.
Analysts at Statistica, a global statistical firm, shared that the average costs of Brent, the international benchmark for crude oil, stood at $75 per barrel in April and rose to $80 per barrel in May.
By producing 29.97 million barrels of crude oil in April at an average price of $80 per barrel, Nigeria earned approximately $2.4bn (equivalent to N1.1tn at the official exchange rate of N461/$ as of April 2023).
The increase in crude oil production resulted in Nigeria pumping out 36.7 million barrels in May, with an average cost of $75 per barrel. As a result, Nigeria’s oil earnings rose to around $2.75bn, equivalent to N1.27tn based on the official exchange rate of N461/$ as of May 2023.
While the cumulative difference in oil production between the two months exceeded six million barrels, there was a decline in the average cost of crude oil, dropping from approximately $80 per barrel in April to $75 per barrel in May.
This surge in Nigeria’s crude oil production, coupled with the rise in revenue, showcases the potential for further economic growth in the country. It highlights the significance of the oil industry in Nigeria’s overall economic development and its crucial role in generating substantial revenue for the nation.
Nigeria’s increasing crude oil production not only contributes to the country’s economic stability but also strengthens its position as a key player in the global oil market. This positive trend sets the stage for continued progress in Nigeria’s oil sector and provides opportunities for investment and growth in the nation’s economy.
