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Why Nigeria lost N249bn in July to drop in oil output- NUPRC




Nigeria lost about N24 billion in crude oil revenue in July following a plunge in the country’s oil output by over 4 million barrels in the same month, the latest oil production data on Sunday showed.

Data 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 in July.

The figure shows that the country lost about four million barrels of oil between June and July.

Meanwhile, pipeline vandalism and crude oil theft have been blamed severally 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.

Losing four million barrels of crude oil in July 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 local currency exchange rate in July at N777.3/$.

According to recent data, Nigeria’s foreign reserves dropped from $37.1 billion in January 2023 to $33.9 billion in July.