Data from the September 2023 report of the Organization of Petroleum Exporting Countries (OPEC)
shows that Nigeria’s oil output rose by 9.3% from 1.08 mb/d recorded in July to 1.18 million barrels per day (mb/d) in August 2023. However, oil output still falls short of the 1.74 mb/d quota allocated to Nigeria by OPEC and far below the 1.69 mb/d assumed in the 2023 budget. In June 2023, OPEC reduced Nigeria’s future quota by over 20% from 1.74 mb/d to 1.38 mb/d , and the new quota will become effective from January 2024 if the output level remains low. This data on crude oil production indicates that Nigeria is not getting the maximum fiscal buffer associated with the recent rise in crude oil, which is above $90 per barrel.
October 9, 2023
Nigeria Economic Update (Issue 37)
Related
Nigeria Economic Update (Issue 39)
Nigerias
external reserve fell marginally by from $25.36 billion to $25.16 billion.
The decline likely reflects the continued sales of dollar by CBN amid fall in
oil revenue. Similarly, the naira/dollar exchange rate depreciated marginally
by 0.5 percent to N424/$ at the parallel segmentas also seen in
preceding weeks. The continued depreciation likely points to banks low level
compliance to CBNs dollar sales directive made in August, 2016,
thus creating artificial dollar scarcity in the parallel market.
Nigeria Economic Update (Issue 19)
Internally generated revenue by 35 states for the 2016 fiscal year increased by 17.5 percent to N802 billion from N683 billion generated in the preceding year. A breakdown of the IGR shows that the increase was driven by PAYE, Direct assessment, Road taxes, Revenue from MDAs and other taxes. The highest and lowest revenue generating states were Lagos (38%) and Ebonyi (0.1%) respectively. An improvement in the efficiency of the tax system could improve the contributions of the IGR to overall government revenue. Particularly, incorporating workers in small stores, agricultural and informal businesses into the tax system; building capacity of tax officials and computerizing their operations; as well as investing in quality data collection and access could provide some quick wins.