Nigeria’s crude oil revenue soared to N50.88 trillion in 2024, far exceeding the nation’s initial projections, according to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and global research firm Statista.
The country produced a total of 408.68 million barrels of crude oil last year, with an average price of $80.53 per barrel, leading to revenue of $32.91 billion. When converted at an exchange rate of N1,546 to a dollar, this amounted to N50.88 trillion. This marks a significant increase over the government’s target, which was based on an estimated $78 per barrel price and an anticipated output of 649.7 million barrels.
Despite falling short of its target to produce 1.78 million barrels per day (mbpd), Nigeria’s oil revenues were buoyed by fluctuations in global crude prices. In March, prices spiked due to geopolitical tensions, pushing Brent crude from $82.44 to $86.87. However, by September, prices fell below $70 per barrel, marking the first drop since December 2021. December prices averaged $74 per barrel.
The rise in Nigeria’s oil revenue can also be attributed to the depreciation of the naira, which contributed to higher naira-equivalent earnings. In total, the Nigerian National Petroleum Corporation Limited (NNPCL), international oil companies (IOCs), and indigenous producers garnered significant revenues from oil sales, though these funds are distributed across various stakeholders, including the three tiers of government and oil producers.
While Nigeria’s crude oil production remained below the OPEC-set quota, averaging 1.484mbpd in December, there were signs of recovery. Production peaked at 1.69mbpd, inclusive of condensate, in December. Despite this, the country’s daily output consistently fell short of its 1.78mbpd target throughout the year, with the NUPRC reporting an overall instability in production levels.
Looking ahead, Nigeria aims to ramp up production to 2mbpd in 2025, reflecting the government’s ongoing efforts to boost output despite a challenging market environment.
The impressive N50.88 trillion revenue illustrates the country’s continued reliance on crude oil, even as it faces production and price uncertainties in a volatile global market.
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