News reports reaching VERY SERIAL indicates that Nigeria has lost a record high $319 million in crude oil revenue in July 2023 alone due to oil production slump by over four million barrels within the same month.
Nigeria has lost over $319 million (approximately N249 billion) in crude oil revenue during July due to a significant drop in the country’s oil production by over four million barrels within the same month.
The most recent oil production data, observed on Sunday, revealed that Nigeria’s total oil production declined from 37.5 million barrels in June to 33.5 million barrels in July, signaling a loss of about four million barrels in just one month.
Nigeria loses billions due to lower oil output, crude theft, and pipeline damage
This drop has been attributed to pipeline vandalism and crude oil theft, which have consistently plagued Nigeria’s oil output.
This decline corresponds with an average Brent crude oil price of $80.1 per barrel in July 2023. As a result, Nigeria’s loss amounted to an estimated $320.4 million for that month.
When calculated using the average exchange rate of N777.3 to the US dollar in July, the loss translates to about N249 billion.
Furthermore, data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicated that the daily crude oil output decreased from 1.25 million barrels per day in June to 1.08 million barrels per day in July.
This situation marks a concerning trend, especially considering the country’s efforts to curb oil theft and increase production.
Billy Gillis-Harry, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria, expressed concern about this development, emphasizing that the decline in oil output could have negative implications for the country’s economy.
Gillis-Harry pointed out that urgent investigation and measures are needed to address the situation and potentially reverse the trend.
He also suggested that recent oil discoveries in Nasarawa and Bauchi might contribute to a positive change in Nigeria’s oil production in the future.