Between January and November 2022, Nigeria’s production of crude oil fell by 6.9 million barrels per day (bpd). This is stated in reports obtained from the Nigerian Upstream Petroleum Regulatory Commission and the Organization of Petroleum Exporting Countries (OPEC) (NUPRC).
In order to maintain a stable market for oil, OPEC sets production caps for its member nations at its discretion. Nigeria’s latest production share is 1. 8 million bpd, but during the months under review, the nation fell short of its quota due to a variety of sectoral difficulties.
Recently, the Federal Government claimed that oil theft prevented the nation from fulfilling its OPEC quota. The nation lost its position as Africa’s top crude producer because it was unable to produce crude oil at an optimal level.
Speaking on the issue, Temitope Omosuyi, investment strategist, Afrinvest Securities Ltd, told TheCable that a unique challenge Nigeria’s oil industry was faced with in 2022 was its failure to meet the OPEC quota when oil prices were high (above $100 a barrel). The analyst believes that Nigeria may still not get the best from oil revenue even if it increases output as prices are expected to crash.
”Bit of challenge in terms of maximising oil revenue because oil prices are expected to decline and if we are looking at increasing production so as to maximise revenue, we may not be able to get the best from oil,” he said.