Nigeria experienced a significant drop in oil production in April 2023, according to the latest report by the Organization of Petroleum Exporting Countries (OPEC).
The country’s oil output, including condensate, decreased by 17.7% from the previous month, falling to 1.25 million barrels per day (bpd) compared to 1.52 million bpd in March 2023.
OPEC’s report revealed that Nigeria’s oil production, excluding condensate, also witnessed a decline of 23% on a month-on-month basis, reaching 999,999 bpd in April 2023 compared to 1.3 million bpd in May 2023.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed the decrease in oil output, including condensate, during the same period.
Despite the addition of condensate, which has the capacity to contribute between 300,000 bpd and 400,000 bpd, Nigeria failed to meet its target of 1.69 million bpd as set in the 2023 budget.
In addition to the decline in production, oil prices also experienced a drop, with crudes, including Nigeria’s Bonny Light, falling to $74 per barrel.
This marks a decrease from the previous price of $80 per barrel recorded two weeks ago and falls below the $75 per barrel benchmark set in the 2023 budget.
Despite these challenges, experts predict a potential rebound in the market. Dr. Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, anticipates a leap in oil prices in the coming weeks.
