Nigeria’s crude oil revenues increased to over N1.68 trillion in June 2023 as the country shored up its output last month, according to an analysis of oil production figures released by the Nigerian government.
Data released by Nigeria Upstream Petroleum Regulatory Commission (NUPRC) on Thursday, July 13, 2023, shows that crude oil production rose to 1,248,960 million barrels daily.
The report shows that Nigeria produced 1,183691 million barrels of crude oil daily in May, 65,269 barrels lower than in June.
Per the report, the total crude output in June was 37,468,789 million barrels, an increase of 36,694,427 barrels produced in May. The development shows that Nigeria’s output increased by 774,326 barrels in June compared to crude oil production in May.
A World Bank report puts the average cost of crude oil in June 2023 at $74.89/barrel. By producing 37,468,798 in June, Nigeria earned about $2.81 billion from oil sales in the month under review.
At an average exchange rate of N600 per dollar in June, Nigeria earned about N1.68 trillion from the commodity. It was reported that oil earnings were about N1.28 trillion in May 2023, when the price of crude oil and the monthly exchange rate stood at $75.70 per barrel and N461.4 to a dollar, respectively.
The dollar’s exchange rate increased in June as the Central Bank of Nigeria embarked on the unification of foreign exchange rate windows in the country on June 14, 2023, to allow market forces to determine the rate.
The development comes as Nigeria maintained its lead as Africa’s largest oil producing-country in Africa. The Organisation of Petroleum Exporting Countries (OPEC) disclosed that Nigeria maintained the position in June, followed by Angola, Algeria, and Congo. OPEC’s Month Oil Market Report for June, released on Thursday, July 13, 2023, puts Nigeria ahead of other oil-producing countries on the continent with 1.298 million barrels per day.
The OPEC report shows that Nigeria increased its production output compared to the 1,277 million barrels produced in May 2023. Analysts forecasts increased oil earnings for Nigeria Another report shows that Angola came next with Direct Communication revealing it produced 1,102 million barrels per day in June, lower than the 1,148 million barrels reported in the month before.
Elizabeth Thomas, an energy expert, revealed that Nigeria should expect more earnings from oil in the coming months due to the escalating tension between Russia and Ukraine, which may cause a hike in oil prices.
“You know Saudi Arabia has indicated an interest in cutting oil output in the coming months to curtail glut in the market. If that happens, Nigeria will earn more from crude oil production,” she stated.