Nigeria’s oil production fell in 2021, according to the World Bank, due to a lack of maintenance and infrastructural efficiency.
Nigeria has yet to gain from rising oil prices as a result of decreased oil production and fuel subsidies, according to the report.
This was said by the Washington-based bank in a recent research titled “Migration and Development Brief: Implications of the Ukraine Crisis and COVID-19 on Global Migration and Remittance Flow Governance.”
“Nigeria has not benefited from higher oil prices to date because: oil production declined in 2021 due to lack of maintenance and infrastructure efficiency; and domestic petrol prices remain fixed—increasing the cost of the ‘Premium Motor Spirit’ subsidy, a large and growing fiscal burden,” according to the report. In a separate World Bank analysis titled ‘Global Flaring and Venting Regulations: 28 Case Studies from Around the World,’ it was shown that oil production in Nigeria fell by 40% in almost a decade.
“From 2012 to 2021, Nigeria’s oil production plummeted by about 40%. The intensity of the flaring rarely varied during this time. Gas flared fell 25% in relation to oil production, from 9.6 billion cubic meters to 6.6 billion cubic meters. The most recent flare count, done in 2019, found 166 individual flare sites,” according to the report.
According to the World Bank, Nigeria has the highest gap among oil-producing countries due to sabotage inside the oil production system as well as other issues such as inadequate investments and the epidemic.
Nigeria is short 500,000 barrels per day, while Angola and Russia are both short 300,000 barrels per day, according to the bank.
“At the moment, the largest shortages are in Nigeria (0.5 mb/d), Angola, and Russia (each 0.3 mb/d),” the bank stated. Maintenance (Kazakhstan and Libya), riots (Kazakhstan), sabotage (Nigeria), and bad weather (Iraq and Libya) have all had a temporary impact on production.”
OPEC had previously announced that Nigeria’s oil production quota has been increased from the 1.735 million barrels per day objective authorized in April 2022 to a new target of 1.753 million barrels per day for May 2022. The Federal Government called for an inclusive energy transition that would benefit not only Nigeria but also other African countries as OPEC boosted Nigeria’s oil output quota.
According to OPEC estimates, Nigeria’s crude oil production fell by 744,000 barrels in March 2021.
The OPEC Monthly Oil Market Report for April 2022 detailed the oil production volumes of its member countries and allies, revealing that Nigeria’s output decreased in March.
According to our correspondent’s study of the paper, Nigeria’s oil production fell from 1.378 million barrels per day in February 2021 to 1.354 million barrels per day in March, a daily loss of 24,000 barrels of crude oil.
Despite the current financial crisis threatening the Nigerian economy, this means that the country’s oil production fell by 744,000 barrels in the month of March.
