Nigeria’s forex revenue soars as crude production hits 1.45mbpd September

Nigeria’s Foreign Reserves get another boost days after the Eurobond funds hits the treasury, with additional 155,000 barrels of crude oil added to the nation’s daily production in September, report by the Organisation of Petroleum Exporting Countries (OPEC) said.

With this addition, average daily production for the mont rose to 1.451 million barrel per day (mbpd). It stood at 1.296mbpd in August this year.

Nigeria has been underperforming in the last few months due to years of underinvestment exacerbated by the shutting down of various assets last year following OPEC cuts brought about by the COVID-19 pandemic.

Aside deteriorating facilities, theft and general inefficiency in production, crude grade, Forcados has spent the third of the month on force majeure in addition to the damage to the Nembe Creek Trunk Line, which has severely impaired exports of Bonny Light.

But despite the shortages in crude oil production, the country recently wrote the oil cartel requesting additional barrels, arguing that its baseline of 1.8 million needed to be updated since it was picked at a time the country was pumping very low liquids due to the Niger Delta crisis.

OPEC noted that Nigeria’s non-oil economic activities grew despite the lingering effects of the current COVID-19 wave, adding that labour market pressure continued to be a concern.