In November 2023, Nigeria experienced a significant drop in crude oil output, resulting in a loss of approximately N289.6bn in oil revenue compared to the previous month, October. According to data obtained from the Nigerian Upstream Petroleum Regulatory Commission in Abuja, the country produced 41,867,775 million barrels of crude (excluding condensates) in October. However, this figure sharply declined to 37,508,971 barrels in November, indicating a substantial reduction of 4,358,804 million barrels.
The average price of Brent, the global crude benchmark, stood at $82.94 per barrel in November 2023, according to Country Economy, an international statistical firm. With the loss of 4,358,804 million barrels of crude in November, Nigeria’s forfeited oil value amounted to about $361.52m.
Considering the average exchange rate of the naira against the United States dollar in November at N801/$, the crash in oil output led to a staggering decline of about N289.6bn in Nigeria’s oil revenue for the month.
Further examination of the Nigerian Upstream Petroleum Regulatory Commission’s report revealed fluctuating crude oil outputs throughout the year. In January through May 2023, outputs ranged from 30,131,770 million barrels to 39,268,847 million barrels. The subsequent months witnessed outputs of 33,761,767 million barrels to 40,396,863 million barrels, indicating a varying trend in production.
Despite the recent decline in oil output, the Federal Government maintained its commitment to meeting and surpassing the 2024 crude oil budget benchmark of 1.7 million barrels per day. The situation underscores the economic challenges posed by fluctuations in oil production and the importance of effective management to mitigate revenue losses.
