The latest report by the Organization of Petroleum Exporting Countries (OPEC) has disclosed that Nigeria dropped from fifth position in September to seventh position in October 2022.
Driving the news
According to OPEC’s report released for the month of October, Nigeria made an oil output of 1.014 million barrels per day; behind two other African countries, including Angola, which produced 1.051 million barrels per day and Algeria’s 1.060 million barrels per day.
- Other non-African countries ahead of Nigeria, Africa’s most populous nation, include Saudi Arabia, United Arab Emirates, Kuwait, and Iraq.
Why it matters
Recently, Nigeria has faced a drop in oil production due to oil theft, flood, outdated production facilities, amongst others. Crude oil theft in particular has taken on an unprecedented nature. From 2.5 million barrels at the end of 2014 to struggling above 1.9 million barrels for the past 7 years. The country has consistently performed below expectations.
A deeper dive
Nairametrics stated that three active oil terminals, Forcados, Bonny, and Brass, had all been shut down as a result of the alarming rate of crude oil theft, which resulted in the loss of approximately 600,000 barrels per day.
- Analysts expect the total revenue of the oil and gas federation to be N9.37 trillion in 2022. Nonetheless, as of 30th April 2022, just N1.23 trillion had been realized out of the projected N3.12 trillion, reflecting a 39% performance.
The big picture
Nigeria’s oil was once the most significant contributor to the nation’s GDP, but recent data have revealed that information and communications technology and trade have overtaken the sector. Both sectors contributed more to the country’s GDP during the second quarter of this year.