According to the Organisation of Petroleum Exporting Countries (OPEC) in its July 2023 Monthly Oil Market Report, Nigeria’s oil output dropped month-on-month (MoM), to 1.249 million barrels per day (mb/d) in June 2023. This represents a by 5.5 percent increase from 1.184 million mb/d recorded in May 2023. This output falls short of the country’s oil production quota of 1.74 mb/d assigned by OPEC and is also below the 2023 budget target of 1.69mb/d. This is a major source of concern, as the country is faced with challenges regarding revenue generation, with oil, the mainstay of the economy, being underutilised due to lower production levels.
August 10, 2023
Nigeria Economic Update (Issue 28)
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Nigeria Economic Update (Issue 49)
OPEC weekly basket price reduced from $61.14 to $60.73 per barrel (December 1 8, 2017). Similarly, Global oil benchmark crude sold for as low as $61.22 per barrel during the week, down week-on-week by 1.8 percent. Nigerias Bonny light declined slightly by approximately 1 percent to $63.534. The fall in crude prices came after a sharp rise in U.S. inventories of refined fuel, which suggested that actual demand may be weakening5 (the EIA data shows an increase of 8.5 million barrels of stored fuel). Given that crude oil revenue remains critical to Nigerias budget performance, investments aimed at improving growth and competitiveness of other key sectors is essential to minimize distortions on budgetary expenditure.