Nigeria’s inability to meet it’s target of 1.78 million barrels of daily production for 2024 is threatening the implementation of the budget.
Latest data from the Organisation of Petroleum Export Countries (OPEC) shows that Nigeria’s crude oil production for January averaged around 1.427 million barrels of crude oil daily.
There was, however, an increase of 91,000 barrels, compared to the 1.33 million barrels daily production recorded in December.
According to OPEC, the figures were obtained from direct communication with operators in the country.
It However said based on secondary data it obtained, Nigeria’s average daily crude oil production stood at 1.419 million barrels daily- a drop of around 3,000 barrels compared to the 1.422 million barrels recorded in the previous month of December.
Members of the OPEC produced a cumulative 26.34 million bpd for January, indicating a decline of 350,000 barrels daily when compared with the total production for the previous month.
The report further noted that world oil supply for the month dropped by 0.6 million barrels daily to around 101.8 mb/d.
The federal government set a benchmark production target of 1.78 million barrels of oil daily in the 2024 budget to achieve revenue projections and also projected the benchmark price of crude oil in the budget at $77.96. The average price of crude oil for January stood at $80.12 slightly above Nigeria’s benchmark price.
Failure to meet the oil production target will lead to revenue shortfalls, posing a threat to the implementation of the budget.
