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Nigeria Suffers First Oil Production Fall In Seven Months

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Nigeria’s crude oil output dropped by 38,102 barrels per day in March, translating to a cumulative loss of about 1,181,162 barrels in the month under review, and signalled the first plunge in oil production since the last seven months.

Industry data obtained in Abuja on Monday showed that Nigeria’s oil production had been on the rise since September 2022, following concerted efforts by the Federal Government and stakeholders to curb oil theft in the sector.

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The rise in oil output was, however, not sustained in March, as latest figures from the Nigeria Upstream Petroleum Regulatory Commission indicated that while the country pumped 1,306,304 barrels of crude daily in February, the volume dropped to 1,268,202 barrels per day in March.

This indicated a decrease of 38,102 barrels daily, which implies that Nigeria lost a total of about 1,181,162 barrels of crude in March.

READ ALSO: Nigeria, Others Need $7.5bn To Deepen LPG Usage – Refiners

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In monetary terms, data from Country Economy, a global statistical firm, showed that the average cost of Brent, the international benchmark for oil, in March 2023, was $78.43/barrel.

Therefore by losing 1,181,162 barrels in March, Nigeria failed to earn a total of $92,638,535.66 (N42.71bn at the official exchange rate of N461/$), during the period under review.

Nigeria recorded its lowest oil production volume of 0.937 million barrels per day in September 2022. The Federal Government and oil sector players blamed this on the massive crude theft in Nigeria’s oil rich Niger Delta.

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The situation also led to humongous revenue losses for the country, international oil companies operating in NIgeria, as well as indigenous operators in the industry.

READ ALSO: Why My N250bn Offer To Buy Transcorp Was Rejected – Femi Otedola

But the country’s oil output started improving after September, following concerted efforts by security officials and oil operators, as industry figures showed that crude production rose to 1.014 million barrels per day in October.

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This indicated an increase of 0.077mbpd when compared to the 0.937mbpd output in September. In November, the country pumped 1.185mbpd crude, representing an increase of 0.171mbpd when matched against what was produced in October.

The rise in output continued in December last year, as Nigeria produced 1.253mbpd in that month, indicating an increase of 0.05mbpd when compared to its output in November.

The 1.258mbpd oil production in January 2023 was about 23,000bpd higher than the 1.235mbpd crude oil output in December 2022.

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The momentum was sustained in February, with an output of 1.31mbpd. But the volume dropped to 1.27mbpd in March, putting an end to the seven-month run in Nigeria’s oil output.

The country targets to meet the 1.8mbpd quota approved for it by the Organisation of Petroleum Exporting Countries. Nigeria generates bulk of its foreign exchange from crude oil and gas sales.

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The Federal Government, since last year, intensified efforts to shore-up Nigeria’s crude oil production and reduce its theft by vandals and thieves.

“Admittedly, one major area of value erosion in the industry is the menace of crude oil theft. Our records indicate that the menace of oil theft has negatively impacted the oil and gas sector for about two decades with attendant huge financial losses to our nation,” the Chief Executive, NUPRC, Gbenga Komolafe, stated recently.

READ ALSO: Tax Collector Jailed For Causing Hurt, Mischief

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He said the commission, in collaboration with the various arms of the security forces, the Nigerian National Petroleum Company Limited and the host communities, had been able to suppress the ugly trend of hydrocarbon value decimation.

“Now, our nation has continued to record good dividends of these collaborative efforts as production figures are progressively increasing. The January 2023 volume is approximately 1.5 million barrels per day of oil and condensates.

“It is expected that this number will continue to increase as further measures are introduced and sustained to remove all illegal connections that aid crude oil theft,” the NUPRC boss stated.

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NNPCL Increases Fuel Price

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The Nigerian National Petroleum Company Limited, NNPCL, has increased the pump price of premium motor spirit across its retail outlets.

It was gathered that NNPCL retail outlets in Abuja have adjusted their fuel pump price to N955 per litre from N890.

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This is the case in NNPCL retail outlets along Kubwa Expressway, Wuse and other parts of Abuja.

READ ALSO:Fuel Station Manager, Three Others Arrested For Robbery

Similarly, the pump price hike has been implemented at filling stations in Kogi and Nasarawa.

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This means that the petrol pump price was increased by N65.

This comes after independent petroleum product marketers and filling station owners in Abuja increased petrol pump prices to between N950 and N971 per litre at the weekend. Their decision followed an upward review of the ex-depot petrol price by Dangote Refinery to N858 per litre, up from N820.

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Naira Appreciates Against Dollar As External Reserves Swell

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The naira appreciated against the dollar at the official foreign exchange market on Monday to begin the week on a bullish note amid swelling external reserves.

According to the Central Bank of Nigeria’s exchange data, the naira appreciated to N1,531.95 against the dollar on Monday from N1,533.74 traded last week Friday.

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READ ALSO:Naira Continues To Appreciate Against Dollar On Official Market

This showed that the Naira strengthened by N1.79 when compared to the N1,533.74 exchanged at the close of work last week.

Meanwhile, at the black market, the naira remained stable at N1560 per litre, the same exchange rate traded on Friday.

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The development comes as Nigeria’s external reserves had maintained a modest rise to $39.54 billion as of August 1st, 2025, up from $39.36 billion on July 30th.

 

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Naira Continues To Appreciate Against Dollar On Official Market

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The naira continued its appreciation against the dollar at the foreign exchange market on Tuesday.

Accordingly, the naira strengthened further to N1,533.18 against the dollar on Tuesday, from N1,534.21 traded the previous day.

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This represents a gain of N1.03 against the dollar on a day-to-day basis and marks the second consecutive day of appreciation at the official FX market.

READ ALSO:Woman Arrested For Killing, Selling Pregnant Nurse’s Body Parts

Meanwhile, on the black market, the naira depreciated further to N1,545 per dollar on Tuesday from N1,537 traded on Monday.

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Recall that the naira had similarly closed Monday’s trading session with mixed sentiments, recording gains at the official market but depreciating at the parallel market.

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