The month of November 2023 was marked by a significant drop in oil production in Nigeria. According to figures released by the Nigerian Upstream Petroleum Regulatory Commission, crude oil production (excluding condensates) fell by 10% from 41,867,775 million barrels in October to 37,508,971 barrels in November.
This decrease of 4,358,804 barrels of oil resulted in a financial loss of about $361.52 million to Nigeria during the month of November. Converted to Naira according to the November 2023 exchange rate (801 Naira to 1 dollar), this represents a loss of almost 289.6 billion Naira in oil revenue for the country.
This drop in oil production in Nigeria also had an impact globally, contributing to OPEC’s production decline in November. Indeed, for the first time since July, OPEC recorded a drop in its production, with a decrease of 90,000 barrels per day compared to the previous month. The decline was caused by lower shipments from Nigeria and Iraq, as well as ongoing production cuts by Saudi Arabia and other members of the broader OPEC+ alliance.
This situation highlights the challenges Nigeria faces in maintaining stable and sustainable oil production. Indeed, fluctuations in oil prices in the global market and internal issues such as attacks by militant groups can have a significant impact on the country’s production.
It is essential for Nigeria to diversify its economy and reduce its dependence on oil. This involves the development of other sectors such as agriculture, tourism and manufacturing industries. Additionally, measures must be taken to strengthen the security of oil installations and effectively manage conflicts in oil-producing regions.
In conclusion, the decline in oil production in Nigeria in November 2023 has resulted in considerable financial losses for the country. This situation highlights the need for Nigeria to diversify its economy and put in place measures to ensure stable and sustainable oil production.