Oil price drops, as Nigeria’s oil production slumps to 1.25m bpd

Nigeria’s Bonny light crude today dropped to $114 against $123 per barrel recorded the previous day, while the price of the international benchmark, Brent crude oil also fell by over one per cent to trade at $110 against $114 per barrel recorded on Friday as market forces adjust amidst Russia ‘ invasion of Ukraine.

However, Nigeria’s oil production dropped in February to an average of 1.25 million barrels per day (bpd) from 1.39 million recorded the previous month (January).

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed this in its latest crude oil and condensate production data for February 2022.

The report showed that the drop represented 10 percent from the January production figure and the lowest since December 2021 when production dropped to 1.1 million barrels per day.

The figure is also lower than the 1.8 million barrels per day production quota set by the Organisation of Petroleum Exporting Countries (OPEC).

Since May 2020, Nigeria has been struggling between 1.4 million and 1.1 million bpd of oil output, causing a huge drop in monthly allocation to the federation account.

But the Federal Government had blamed lack of investment in the oil and gas industry for Nigeria’s continued failure to meet its 1.8 million barrels per day oil production quota set by OPEC.