Nigeria’s Oil Output Drops By 15%

According to the Organisation of Petroleum Exporting Countries, OPEC, the average Nigeria’s oil output dropped Year-on-Year, by to 1.5 million barrels per day, mb/d (excluding condensate), in 2020. This, when compared, is a15 percent drop from 1.7mb/d recorded in the corresponding period of 2019.

On Quarter-on-Quarter, QoQ, the nation’s oil output stood at an average of 1.75 mb/d in the first quarter (January -March) of 2020. But it dropped to 1.52 mb/d, 1.35mb/d and 1.28 mb/d in the Second, Third and Fourth quarters of 2020.

In the first quarter of 2019 1.67 mb/d was recorded. While 1.77 mb/d, 1.82 mb/d and 1.67 mb/d were recorded in the second, third and fourth quarters of the corresponding period of 2019.

However, this means that the Federal Government might not be in a position to grow the nation’s Gross Domestic Product, GDP – the final value of the goods and services produced within a country during a specified period of time, normally a year – driven mainly by oil and gas, soon due to limited output and a relatively low oil price of its Bonny Light, currently standing at $54 per barrel.

With the high production quota of the Organisation of Petroleum Exporting Countries, OPEC, and equally high crude oil prices, which rose to $140 per barrel, in 2008, Nigeria was able to boost its GDP in the past but has not been able to do so in recent years.

Kehinde Ogunyale

Reporting on the data-driven economy, and investigations.

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