Authorities in Nigeria say a total of $10.246billion (about N4.2trillion) in crude oil revenue in the first six months of 2022 due to the country’s inability to meet the OPEC daily production quota.
The shortfall, which is about a quarter of Nigeria’s 2022 budget, is more than the N4 trillion allocated for fuel subsidy in the budget, according to data sourced from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The federal government had projected 1.8 million barrels daily crude oil production projection for the 2022 budget. However, the highest production figure recorded in the first half of the year was 1.4 million barrels, thus exacerbating the government’s precarious revenue situation.
According to the NUPRC data, in January, Nigeria produced an average of 1.4 million barrels per day (mbd) totaling 43.4 million barrels per month (bpm) instead of the daily production figure of 1.683 million bpd and 52.2 million bpm allocated to it by OPEC.
As it is, with the average crude oil price for the month at $86.5 per barrel, the country only earned $3.757 billion as crude oil revenue, instead of $4.51bn, thus forfeiting $756 million.
In February, Nigeria had a daily average production of 1.258 million barrels per day, instead of 1.8 million barrels, amounting to 35.22 million barrels for the whole month.
Since the average price of crude oil per barrel was $97.13, the revenue earned from crude oil sale was $3.42 billion instead of $4.89 billion. The shortfall for the month was $1.74 billion.
The total crude oil production for the month of March was 38.39 million barrels based on the daily production of 1.238 million barrels, instead of the allocated 1.71718 million barrels.
Nigeria earned a revenue of $4.5 billion instead of $6.24 billion since the average price of crude oil was $117.25 per barrel. Consequently, the country had a shortfall of $1.74 billion.
In April, Nigeria had a daily crude oil production of 1.219 million barrels and total production of 36.57 million barrels as against the daily figure of 1.735 million barrels and monthly figure of 52.05 million barrels allocated to it by OPEC. The average crude oil price for that month was $104.58.
Consequently, the country earned $3.82 billion revenue from crude oil sales instead of $5.44 billion. The shortfall for the month was $1.62 billion.
For May, Nigeria’s daily crude oil production was 1.024 million barrels, while the total production for the month was 31.74 million barrels, although the country should have had a daily production figure of 1.753 million barrels and a monthly figure of 53.34 million barrels.
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