Nigeria’s Crude Oil Earnings Have Reached N12.4 Trillion In 11 Months

Nigeria's Crude Oil Earnings Have Reached N12.4 Trillion In 11 Months
Nigeria's Crude Oil Earnings Have Reached N12.4 Trillion In 11 Months

Between January and November 2021, Nigeria produced 440.774 million barrels of crude oil worth approximately N12.4 trillion, according to an analysis of the most recent oil production data released by the Federal Government.

According to a document on Crude Oil and Condensate Production for 2021 obtained from the Nigerian Upstream Petroleum Regulatory Commission on Tuesday, the Federal Government earned approximately N12.4 trillion from crude oil sales alone during the review period.

It was discovered that oil production fluctuated over the 11-month period, reaching a high of 44.287 million barrels in March and a low of 37.405 million barrels in September.

In January, February, April, May, and June, production volumes were 42.195 million barrels, 39.869 million barrels, 41.17 million barrels, 41.679 million barrels, and 39.4 million barrels, respectively.

The country’s crude oil production volumes in July, August, October, and November were 41.026 million barrels, 38.406 million barrels, 38.06 million barrels, and 38.247 million barrels, respectively.

According to Statistica, a global statistical firm, the average monthly price of a barrel of Brent, the crude against which Nigerian oil is priced, was $54.77, $62.28, $65.41, and $64.81 in January, February, March, and April 2021, respectively.

The average prices in May, June, July, and August 2021 were $68.53, $73.16, $75.17, and $70.71 per barrel, respectively.

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During that time, the country’s official exchange rate was around N400 to the dollar. It remained above N400/$ from May to November 2021, after hovering around N379/$ earlier in the year.

Based on an average of N400/$, the various average monthly Brent costs, and the monthly crude oil production figures stated above, Nigeria earned approximately N924.41 billion from oil in January, N993.22 billion in February, and N1.16 trillion in March 2021.

Furthermore, the country’s crude oil earnings in April, May, June, and July were approximately N1.07 trillion, N1.14 trillion, N1.15 trillion, and N1.23 trillion, respectively.

Similarly, the Federal Government received approximately N1.09 trillion, N1.11 trillion, N1.27 trillion, and N1.25 trillion in the months of August, September, October, and November, respectively.
This implies that the government’s total earnings from the sale of crude oil during the 11-month period in 2021 were in the region of N12.4tn.

The majority of Nigeria’s foreign exchange earnings come from crude oil sales, as the country’s economy is heavily reliant on revenue from oil production.