Nigeria reportedly lost about N249 billion (around $320.4 million) in crude oil revenue in July due to a significant drop in oil output. According to data from the Nigerian Upstream Petroleum Regulatory Commission, the country’s total oil production declined from 37.5 million barrels in June to 33.5 million barrels in July. This drop of approximately four million barrels between the two months was attributed to pipeline vandalism and crude oil theft.
Given the average cost of Brent crude oil in July 2023 at $80.1 per barrel, the loss of four million barrels in July would equate to a revenue loss of around $320.4 million. When converted to Nigerian naira at the average exchange rate for July (N777.3/$), this translates to a loss of about N249 billion.
The decline in oil output poses economic challenges for Nigeria, affecting the country’s revenue generation and potentially leading to an economic downturn. The fluctuation in oil production can be influenced by various factors, including security issues, pipeline vandalism, and global oil market dynamics.