Nigeria’s crude oil production rises 1.98% to 1.54 mbpd in Oct~CBN
By Oludare Mayowa
Nigeria’s crude oil production increased marginally by 1.98 percent to 1.54 million barrels per day in October, a report by the Central Bank of Nigeria (CBN) has shown.
Crude oil production in Africa’s biggest producer stood at 1.51 mbpd in September following increased investment in production activities, the CBN said in its report.
“Crude oil production and export have increased marginally by 1.98% (m-o-m) to 1.54 mbpd at the end of October 2020 compared to 1.51 mbpd in September 2020 following increased investment in production activities.
“The production level continues to be well below the budget benchmark of 1.94 mbpd,” the CBN stated in the report.
Nigeria, the eighth largest Organisation of Petroleum Exporting Countries (OPEC) members’ producer depends largely on revenue from crude oil exports to finance its fiscal policy.
Nigeria’s revenue from oil exports accounts for 65 percent of total income and 90 percent of foreign exchange earnings annually.
The report stated that notwithstanding the average oil price being above the revised fiscal benchmark of $28/ per barrel (projected to stay between $40/b and $42/b), “the lower production benchmarked is likely to adversely affect fiscal performance and external reserves accretion.”
Global oil prices have seen a recovery in recent time as many countries take delivery of Covid-19 vaccines, raising hope that the global pandemic may soon be over.
However, a second wave of infection in some major countries including Germany and Britain could reverse some of the gains so far made in global oil supply.
Nigeria on Monday imposed fresh restrictions on some activities in a bid to contain the spread of Covid-19 across the country.