Its no news that crude oil price has risen to $57 per barrel on the average in recent times so also is the fact that Nigeria is currently enjoying improved oil production thanks to her exclusion from OPEC production freeze. These could have in no doubt increased the country’s foreign reserves and invariably have good impact on her economy, Thisday reports.
You will recall that the approved crude oil price benchmark in the nation’s 2016 budget is $38 per barrel but oil price eventually averaged $57 per barrel. This gives the country excess earning of about $19 per barrel.
If we have to go by Central Bank of Nigeria (CBN) September 2016 crude oil export records of 1.3mbpd, Nigeria may have earned an average of $9.1 million daily as excess oil revenue when prices of crude oil was $45.04/b, and $24.7 million now that prices are within $57/b.
Also, the profit accruing to the country as a result of her exemption from the production freeze agreed on by OPEC members is extremely enormous. The gesture from oil cartel is to allow Nigeria recover from he many production disruptions experienced in the hands of Niger Delta Militants who preferred to be addressed as freedom fighters. Although Nigeria has not been able to attain optimal production capacity, the oil body permitted her to produce up to 2.2 million barrels/day.
The increase in crude oil production has since been confirmed by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu. Also, the November 2016 monthly financial and operations report of the Nigerian National Petroleum Corporation (NNPC) reports same.
According to the report, October 2016 monthly report of NNPC shows that a total of 18,049,253 barrels of oil was lifted by the Federal Government. The International Oil Companies (IOCs) and other Independents were not left out as report shows they lifted 35,207,694 barrels while 128,000 barrels was lifted through Alternative Funding. All these bring the total lifting for the month to 53,384,947 barrels.
The $9 excess earning accruing to the government from every barrel of crude oil will in no doubt result in increased and robust foreign reserve.
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