September oil revenue rises by N273.8bn on high output

Nigeria’s oil earnings increased by over N273.8bn in September 2023 following the rise in crude oil production by operators in the sector, Sunday PUNCH findings showed.

An analysis of the latest data obtained from the Nigerian Upstream Petroleum Regulatory Commission indicated that Nigeria pumped 40,396,863 barrels of crude oil (excluding condensates) last month.

This was higher than the 36,615,125 barrels of crude produced in August, which implied that oil output rose by 3,781,738 barrels in September.

The average cost of Brent crude in September was $93.72/barrel, according to data compiled by Thomson Reuters.

By pumping an additional 3,781,738 barrels in September at an average cost of $93.72/barrel, Nigeria’s oil earnings rose by more than $354.42m, representing N273.8bn, at an average exchange rate of N772.65/$ in the review month.

Last week, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, told journalists that Nigeria’s oil production increased to about 1.7 million barrels per day, up from the 1.1mbpd recorded in August this year.

Lokpobiri explained that the rise in crude oil and condensate production was because the government and operators in the sector had been able to identify where the problem was coming from.

He said, “We have a sole agenda and it is to increase crude oil production. Once you increase production there will be more revenue for Nigeria and that is the recipe to virtually all the problems we have in this country.

“You know that Nigeria is very dependent on oil, even our budget is always predicated on how many barrels of oil we produce. Although the non-oil sector is thriving, for us to solve our problems we need to earn enough forex.”