Nigeria’s earnings from crude oil rose to over N1.68 trillion in June 2023 following an increase in the country’s output.
Data from the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) showed that the country’s daily crude oil output rose to 1,248,960 barrels in the review period.
An analysis of figures revealed that in the preceding month of May, oil production was 1,183,691 barrels per day, which was 65,269 barrels lower than what the country produced in June.
The report also indicated that the total crude oil output in June was 37,468,798 barrels, up from a total of 36,694,427 barrels that was produced in the preceding month of May.
This implied that Nigeria’s oil output increased by 774,326 barrels in June when compared to what it produced in May.
Data from the World Bank put the average cost of crude oil in June 2023 at $74.89/barrel. By delivering an increased production of 37,468,798 in June, it implied that the country raked in about $2.81bn from the commodity last month.
Therefore, at an average exchange rate of N600.43/$ in June, according to data from dollar/naira spot exchange rates for 2023, it means that the Federal Government’s oil earnings in June rose to N1.68 trillion.
It was about N1.28 trillion in May when the average price of crude oil and the exchange rate in that month were $75.70/barrel and N461.4/$ respectively.
The average exchange rate of the dollar increased in June, as the Central Bank of Nigeria (CBN) unified the country’s exchange rates into the Investors and Exporters window on June 14, 2023, allowing market forces to determine the rate.
