Nigeria Generates Additional N52 Billion In Oil Revenue In February

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) released figures on Thursday showing that the nation's oil production increased by 48,000 barrels per day (bpd) in February, reaching a peak of 1.306 million bpd output for the month under review.

Comparing the figure to the 1.258 million bpd reported by the oil sector regulator to the Organization of Petroleum Exporting Countries (OPEC), of which Nigeria is an important member, revealed that it was higher.

According to a THISDAY computation, the country made a gross profit of $111.6 million, or nearly N52 billion, during the month under consideration at an average Brent oil price of $83 per barrel.

This amounts to a projected monthly increase of 1.344 million barrels.

Nevertheless, a Reuters poll last week revealed that taking into account secondary data from energy intelligence organisations, Nigeria's output may have climbed by as much as 100,000 barrels per day.

The Nigerian government wants to increase production this quarter to 1.6 million bpd.

Nigeria has been unable to benefit from the high global oil prices due to its inability to achieve its OPEC output limit for more than a year.

The Nigerian National Petroleum Corporation Limited (NNPC) had said that output was over 1.6 million barrels per day (bpd), but the NUPRC estimated it to be slightly over 1.25 million in January and 1.3 million in February.

Condensates, which are not typically included in OPEC calculations and whose production increased to 1.547 million bpd in February from 1.494 million bpd in January, may have been included in the NNPC's figure.

By the cooperation of security forces, neighbourhood organisations, and government agencies in the sector, Nigeria had only lately started to stop the enormous oil thefts, a development that helped increase output.

With Nigeria's output increasing again in February thanks to the OPEC deal, the overall compliance rate rose to 169% of the cuts promised, up from 172% in January.

However, compared to the over 55,000 bpd increase in December 2022, the country's production growth rate has slowed down with increases of 28,000 bpd in January and 48,000 bpd in February.

After months of stagnation, Nigeria's crude oil output prediction saw an increase, with Forcados serving as the country's largest oil production asset.

Nigeria’s output fell to as low as 900,000 bpd in part of the last quarter of 2022.

However, compared to the over 55,000 bpd increase in December 2022, the country's production growth rate has slowed down with increases of 28,000 bpd in January and 48,000 bpd in February.