A new monthly report from the Organization of the Petroleum Exporting Countries has shown a decline in Nigeria’s crude production in December 2021, triggering a loss of oil revenues of around N74.51 billion.
According to OPEC data, Nigeria produced an average of 1.19 million barrels per day in December, down from 1.26 million bpd in November, based on direct communication.
This means an average daily loss of 78,000 barrels was recorded in December, meaning a total loss of 2.42 million barrels in the month.
At the official exchange rate of N415.45 per dollar, this implies that the loss of 2.418 million barrels of crude in December reduced state revenue by about N74.51 billion.
Further analysis of OPEC’s latest report shows that in the first quarter of 2021, Nigeria’s oil production reached an average of 1.312 million barrels per day.
Crude oil revenue losses in Nigeria have lingered due to various challenges in the sector despite efforts to curb them by the government and its agencies.
The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, said, “Government should deploy automated pipelines as well as latest technologies to protect oil assets.”
On his part, the former President, Association of National Accountants of Nigeria, Dr Sam Nzekwe, said, “We can’t be losing such huge sums. The government should explore other forms of technology to manage this concern.”
SKJ