Nigeria Looses N249bn in July as Oil Output Drops

Nigeria loses  about N249bn crude oil revenue in July following a plunge in the country’s oil output by over four million barrels in the same month.

Data obtained from the Nigerian Upstream Petroleum Regulatory Commission indicated that while the country’s total oil production in June was 37.5 million barrels, it dropped to 33.5 million barrels in July.

This shows that the country lost about four million barrels of oil between June and July. Pipeline vandalism and crude oil theft have been blamed severally as the reason for the plunge in Nigeria’s oil output.

The average cost of Brent, the global benchmark for crude oil, in July 2023 was $80.1/barrel, according to data from the World Bank.

By losing four million barrels of crude oil in July, it implies that Nigeria lost about $320.4m in the review month.

Figures from the United States dollar to Nigerian naira spot exchange rates for 2023 put the average exchange rate of the local currency in July at N777.3/$.

When the average exchange rate in July is multiplied with the $320.4m, it implies that Nigeria lost about N249bn during the month under review.