Nigeria’s crude oil earnings reached over N1.68tn in June 2023 due to an increase in the country’s oil output, according to the latest oil production figures released by the Federal Government. Data from the Nigeria Upstream Petroleum Regulatory Commission shows that Nigeria’s daily oil production in June rose to 1,248,960 barrels, surpassing the output in May.
The report indicates that the total crude oil output in June was 37,468,798 barrels, an increase of 774,326 barrels compared to May’s production. With the average cost of crude oil in June at $74.89 per barrel, Nigeria’s earnings from oil reached approximately $2.81bn last month.
The increase in Nigeria’s oil earnings is attributed to the rise in oil production and the higher average exchange rate in June. The average exchange rate of N600.43/$ contributed to the Federal Government’s oil earnings reaching N1.68tn in June, compared to N1.28tn in May.
Nigeria’s oil output has been fluctuating over the past year, with September 2022 recording the lowest production volume due to crude theft in the Niger Delta. However, concerted efforts by security officials and oil operators have led to improvements, and oil production has been gradually increasing since then.
Opinion: The rise in Nigeria’s crude oil earnings in June is a positive development for the country’s economy. Increased oil production and higher prices have contributed to higher revenue generation, providing an opportunity for the government to invest in critical sectors and address economic challenges. However, it is important for Nigeria to diversify its revenue sources and reduce its dependence on oil to ensure long-term economic stability and growth.