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.