Nigeria lost a staggering $232.5 million in January because of fall in crude oil output at a time the country is in dire need of revenue to execute its developmental projects.
The loss was due to the inability of Africa’s largest economy to produce 2.2 million barrels of crude oil per day during the month under review as envisioned in the 2016 budget; rather Nigeria was able to produce an average of 1.95 million barrels per day in January 2016.
With a shortfall of 250,000 barrels per day, Nigeria’s oil revenue target fell by $7.5 million per day (at $30 per barrel), translating to $232.5 million in January.
The development obviously means more troubles for the 2016 budget as the Organisation of Petroleum Exporting Countries, OPEC, has said that Nigeria’s oil production levels fell below the budget target.
OPEC said Nigeria produced an average of 1.95 million barrels per day in January 2016, as against the 2.2 million target set by the 2016 budget.
Although the country’s production levels fell below 2016 targets, it was an improvement of the 2015 production of 1.7 million barrels per day.
For the month of January, OPEC contributed over 1.3 million barrels to the world oil oversupply, with Nigeria contributing to the oversupply.
OPEC said in its oil market report released on Wednesday, “According to secondary sources, total OPEC crude oil production in January averaged 32.33 mb/d, an increase of 131 tb/d over the previous month.
“Crude oil output increased mostly from Nigeria, Iraq, Saudi Arabia and Iran, while production showed a decrease of from Angola, Venezuela and Algeria.”
OPEC also confirmed that the Nigerian oil sector enjoyed modest improvement over the past month.
“The non-oil private sector in Nigeria had a modest improvement in business conditions in January. The PMI stood at 51.3 last month, signalling growth in production, new orders and job creation,” OPEC added.
The country’s 2016 budget has a crude oil benchmark of $38 per barrel and a production level of 2.2 million barrels, both of which are currently not being realised so far.

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