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Oil earnings rise by N363bn in three months

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Nigeria is making progress in oil earnings following improvements in security in the Niger Delta region, as the country raked in an additional N363bn from crude oil sale in the months of October, November and December 2022.

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Figures obtained from the Federal Ministry of Petroleum Resources on Sunday, showed that the country’s oil production rose by 1.014 million barrels per day in October, representing an increase of 0.077mbpd when compared to the 0.937mbpd output in September.

In November, the country pumped 1.185mbpd crude, indicating an increase of 0.171mbpd when contrasted with the daily output in the preceding month of October.

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Also, in December last year, oil production kept increasing, as Nigeria produced 1.253mbpd last month, indicating an increase of 0.05mbpd when compared to its output in November.

Data obtained from Statistica and Countryeconomy, two international economic and statistical firms, showed that in October, November and December 2022, the average cost of Brent, the global benchmark for crude, was $93.4/barrel, $89.62/barrel and $76.42/barrel respectively.

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Since oil production in Nigeria rose by 0.077mbpd in October, this represents an increase of 2.387 million barrels in that month.

At an average crude oil price of $93.4/barrel in the review month, it implies that the country earned an additional $222.95m (N101.02bn, at the official exchange rate of N453.1$) in October last year.

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In November, Nigeria’s oil production rose by 0.171mbpd, an equivalent of 5.13 million barrels in that month, while the average price of crude in the same month was put at $89.62/barrel.

This indicates that Nigeria’s oil earnings increased by $459.75m (N208.31bn at the Central Bank of Nigeria official exchange rate of N453.1/$).

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In December 2022, oil output from Nigeria grew by 0.05mbpd, representing 1.55 million barrels for the review month, while the average cost of Brent was $76.42/barrel.

Therefore, the Federal Government’s revenue from crude oil export last month rose by $118.45m (N53.67bn at the official exchange rate of N453.1/$).

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The summation of the monthly revenue rise during the period showed that Nigeria earned an additional N363bn from oil sales within the three-month duration following the improvement in security in the Niger Delta region.

The President, Major General Muhammadu Buhari (retd.), recently ordered security agencies to eradicate crude oil theft and pipeline vandalism in the Niger Delta before May 29, 2023.

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He said the order became vital in order to effectively ramp up the country’s oil output, stressing that the Federal Government could no longer tolerate the criminality.

Buhari gave the directive through the Minister of State for Petroleum Resources, Chief Timipre Sylva, while addressing troops of the Joint Task Force Operation Delta Safe in Effurum, Delta State, and Port Harcourt, Rivers State.

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Sylva was quoted in a statement issued in Abuja by his media aide, Horatius Egua, as saying, “Mr. President has mandated us to eradicate crude oil theft. He has directed that no litre of crude oil should be stolen across the country again, especially in the South-South.

“He wants crude oil theft completely eliminated by May 29, 2023, as one of the legacies of his government. This is the message from Mr President. We are not where we want to be, but we are happy at what we are seeing.”

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Prior to the renewed efforts of the Federal Government in tackling the menace of crude oil thieves, the nation’s daily crude oil production was about 900,000 barrels per day.

But with the recent improvements in security efforts, there has been an increase in oil output, as production has risen to about 1.5 million barrels per day, according to the statement.

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Sylva added, “I am happy to hear that morale is high here. We were here a few months ago to hand over the mandate of Mr. President to you and that is to ensure that there is zero tolerance for crude oil theft in the region.”

The enhanced output in oil production has increased the country’s earnings from crude oil sales, though Nigeria still spends billions of naira as subsidy of Premium Motor Spirit, popularly called petrol.

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