- The data revealed the huge revenue Nigeria has lost over the past four months due to its inability to produce enough crude oil for sale
- According to data compiled by the Petroleum Resources Organization, Nigeria has failed to produce more than 53 million barrels of oil for sale
- The crude oil production gap has cost Nigeria a staggering N2.2 trillion in projected oil revenue, enough to clear all of the country’s debts to India
Nigeria missed out on a huge oil revenue windfall due to the inability to produce and export 53 million barrels of oil allocated by the Petroleum Resources Organization (OPEC) from January to April.
These huge losses come on the heels of oil prices surging above $100 a barrel on February 24, 2022.
State Petroleum Resources Minister Chief Timipre Sylva in March blamed the lack of investment from international oil companies (IOCs) on the country’s failure to meet its OPEC quota, Vanguard reported.
Over 158,000 Crypto Investors Have All Their Funds Wiped Out As Bitcoin Loops
While pundits and players believe the theft is the reason Nigeria’s oil production figure is struggling.
Missed Monthly Oil Revenue Breakdown
OPEC data showed that in January, Nigeria won OPEC approval to produce 1.683 million barrels per day, which represents 52.1 million for the month of January.
However, the Nigerian National Petroleum Corporation was only able to report pumping of 1.399 mb/d, totaling 43.3 million for the month, leaving a production shortfall of 8.8 million for the month.
In January, oil prices averaged $86.51. This means that Nigeria lost $761 million (300.13 billion naira) in revenue from oil sales.
The production shortfall worsened in February as Nigeria recorded just 36.4m barrels of oil in the month, outputting 1.258m/d against the target of 51.6m per month or 1.78 million barrels per day, leaving a gap of 19.1 million.
Jobs outnumber unemployed in US, report says
The 19.1 million represents a total loss of $1.83 billion (764 billion naira), with the price of oil averaging $97.13 a barrel.
Nigeria also missed its March production target as it reported just 1.238mb/d or 38.37m during the month.
That’s below the country’s OPEC quota of 1.735 million barrels a day or 53.7 million in a month, leaving a shortfall of 15.3 million.
In March, oil prices averaged 117.25 a barrel, meaning the country lost $1.79 billion (739 billion naira) in expected revenue.
It’s the same story in April because on Monday, May 2, 2022, OPEC reveals that for the fourth time, Nigeria has yet to meet its oil production quota.
OPEC revealed that Nigeria was producing 1.39 million barrels per day (41.7 million in one month) against the expected 1.735 mb/d (52.2 million in one month), leaving a gap of 10.5 million barrels of oil.
Nigeria’s foreign exchange reserve exceeds all external debts to countries and banks as CBN deposits over $257m in 20 days
If the missed 10.5 million had been produced and sold, it could have brought Nigeria over $1.1 billion (453.7 billion naira)
What the lost money could do for Nigeria
The 2.2 trillion naira lost revenue due to low production could have helped Nigeria wipe out the debts of Germany, India and Japan.
According to data from the Debt Management Office, Nigeria owes five countries a total of $4.46 billion at the end of December.
Including $71.79 million for Japan, $33.48 million for India and $164.27 million for Germany, making a total of $269.5 million (1.11 billion naira ).
Nigeria loses 80% of its oil production to theft – Pastor Adeboye
Similarly, Pastor Enoch Adeboye of the Redeemed Christian Church of God (RCCG), recently claimed that 80% of the country’s oil production is lost to theft.
The revered cleric said this on Sunday, April 3, adding that 90% of oil revenues are used to service debt in Nigeria.
2.2 million passengers will pass through Nigerian international airports in 2021
“Over 80% of all the oil we produce has been stolen and no one has denied it, it’s from the government.”