The Organization of Petroleum Exporting Countries (OPEC) in its report for April said that Nigeria, for the fourth time in 2022, has failed to meet its oil production quota allocated to its member countries.
Driving the news
The reports showed that Nigeria came short by 40,000 barrels per day as it produced 1.39 million barrels per day as against OPEC’s quota of 1.735 million barrels per day.
- In January, Nigeria produced 1.399 mb/d as against OPEC’s benchmark of 1.683 mb/d. Also, in February and March, Nigeria pumped 1.258mb/d and 1.238 mb/d respectively.
What this means
With data placing Brent crude oil prices for April at $101 per barrel, the shortage of 1.2 million barrels per day has cost Nigeria a loss of $121.2 million or N49.9 billion.
What they are saying
OPEC said apart from Nigeria about 10 oil producing African countries, including Libya, also failed to meet their allocated oil production quota.
The Nigerian government has continued to express its commitment to addressing the critical situation of oil theft in the country. Report shows that in 2021, Nigeria lost 193 million barrels or $3.5 billion to oil theft. This value is 10% of the country’s foreign reserves.