The Organisation of Petroleum Exporting Countries (OPEC), in its monthly oil market report for August 2023, revealed that Nigeria’s oil output fell by 13.6 per cent to 1.08 million barrels per day (mb/d) in July 2023. This indicates a 0.16 mb/d decrease from the 1.25 mb/d produced in June.This implies that the country is still operating below its capacity, below the current quota of 1.7 mb/d allocated by OPEC.
August 23, 2023
Nigeria Economic Update (Issue 31)
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Nigeria Economic Review
Global economic growth remained
fairly stable in 2016Q3 with baseline projections for global growth at 3.1 percent and 2.4
percent by International Monetary Fund (IMF) and the World Bank respectively.
Growth in developed countries was moderate but unevenly distributed: while the
U.S and the UK showed improvements, growth in other economies remained tepid.
Among emerging countries, India witnessed higher growth while growth in China
remained constant but the Chinese Yuan continued to appreciate. Given that
India is Nigerias major crude oil importer, improving economic conditions in
India may translate into rising demand for Nigerias crude oil. However, the
continuous appreciation of the Yuan poses significant inflationary threat in
Nigeria given the high level of imports from China. Subdued global demand, weak
trade, uncertainties in commodity prices and consequences of the Brexit were
the key constraining factors to growth over the period. In addition, growth in
Sub-Saharan African countries remained generally slow on the account of low
commodity price, political turmoil, and inconsistent government policies.