The Federal Government has announced that it is poised to earn approximately N6.99 trillion monthly from the oil sector, following a boost in crude oil production. The Nigerian National Petroleum Company Limited (NNPCL), in collaboration with key stakeholders, has successfully raised the country’s oil production to 1.8 million barrels per day (mbpd).
In 2024, the average price of Brent crude, the global benchmark, stands at around $81 per barrel. While this is slightly lower than the $101 per barrel price in 2022, it is relatively stable compared to the 2023 price of $82 per barrel. At 1.8mbpd and an average price of $81 per barrel, Nigeria is expected to generate $145.8 million daily, which totals approximately $4.37 billion over 30 days.
At an official exchange rate of N1,600 to $1, this translates to an estimated N6.99 trillion in monthly revenue for the Federal Government, thanks to the recent increase in oil output.
NNPCL’s Group Chief Executive Officer, Mele Kyari, made this announcement during a meeting at the Oil Production War Room at the NNPC headquarters in Abuja on Thursday. The meeting, led by the Minister of State for Petroleum Resources, Heineken Lokpobiri, also saw the participation of key officials, including the Chairman of the NNPC Ltd Board, Chief Pius Akinyelure; NNPC’s GCEO, Mele Kyari; Chief Financial Officer, Mr. Adedapo Segun; Executive Vice President, Downstream, Mr. Isiyaku Abdullahi; Executive Vice President, Upstream, Udobong Ntia; and Chief Upstream Investment Officer of NNPC Upstream Investment Management Services, Mr. Bala Wunti, among others.
Earlier, during an interactive session with the Senate Committee on Finance in December 2023, Kyari assured that the projections for crude oil production and the price benchmark used in the 2024 federal budget were realistic and achievable.
In addition to the increase in crude oil production, NNPCL reported that it now produces 7.4 billion standard cubic feet (Bscf) of gas, up from 6.1 Bscf earlier in the year. This increase in gas production is crucial for powering the country’s gas infrastructure, especially the Ajaokuta-Kaduna-Kano (AKK) pipeline.
NNPCL highlighted that this progress reflects the dedication of its teams and aligns with the government’s budgetary goals. Speaking at the meeting, Chief Production War Room Officer, Lawal Musa, praised the collaborative efforts that contributed to the production boost. He credited the success to the active engagement of stakeholders, including NNPCL’s partners, government and private security agencies, and local communities.
Musa further noted that, when the Oil Production War Room was established on June 25, 2024, crude oil production was at 1.43 mbpd. By August 11, the production surpassed the 1.7 mbpd mark, meeting the Presidential mandate for the sector to reach 1.7 million bpd.
