Nigeria could earn as much as N23 billion from crude oil export in June if the oil price hovers around $113 per barrel.
This came on the heels of a production quota raise granted to the country by the Organisation of Petroleum Exporting Countries.
OPEC had, on Thursday, at its 28th OPEC and non-OPEC Ministerial Meeting increased Nigeria’s crude quota from 1.753 million barrels per day in May 2022 to 1.772 million barrels per day in June.
Brent International closed at $113.22 per barrel on Friday, increasing by 2.16 or 1.94 percent.
Going by the Central Bank of Nigeria’s exchange rate of N416, and an output of 1.772 million (55 million barrels a month), total revenue comes to N23 billion for the month under review.
This means the country would likely ramp up exploration to meet its OPEC June quota.
The Africa’s largest economy earns 90 percent of its revenue from crude oil exports.
Experts predicted price could reach $200 per barrel with the ongoing Russia-Ukraine war.
Nigeria had, for the past two years, been unable to meet up with its OPEC production quota due to increased incidences of pipeline vandalism, oil theft, and other technical issues. Its output has stagnated at around 1.2 million barrels per day.
A communiqué by OPEC after the meeting said it “reaffirms the decision of the 10th OPEC and non-OPEC Ministerial Meeting on 12th April 2020 and further endorsed in subsequent meetings, including the 19th OPEC and non-OPEC Ministerial Meeting on the 18th July 2021.
“Reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th OPEC and non-OPEC Ministerial Meeting and the decision to adjust upward the monthly overall production by 0.432 mb/d for June 2022, as per the attached schedule.
“Reiterate the critical importance of adhering to full conformity and the compensation mechanism, taking advantage of the extension of the compensation period until the end of June 2022. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.”
The 29th OPEC and non-OPEC Ministerial Meeting would reconvene on June 2.
Nigeria had been one of the strongest members of the organisation since July 12, 1971.
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