African markets

Nigeria loses top spot to Angola – African Markets

Nigeria is no longer Africa’s largest crude oil producer. This is according to the latest monthly production report from the Organization of the Petroleum Exporting Countries (OPEC).

The top spot now belongs to Angola, which pumped 1.17 million barrels per day of oil in August, more than the 1.13 million barrels per day produced by Nigeria in the same month.

It is the first time that Nigeria has lost the top spot in five years. And that was to be expected given that Nigeria’s crude oil production has steadily declined in recent years.

While this does not justify the decline in production, at least not directly, it should be remembered that Nigeria has struggled with large-scale oil theft by criminals who have constantly vandalized pipelines in the Niger Delta.

Oil theft in Nigeria is now seen as an existential threat to oil companies operating in the region and is on OPEC’s radar. In the first quarter of 2022 alone, the country lost an estimated $1 billion in oil theft, according to Nigeria’s Upstream Petroleum Regulatory Commission.

Last month, President Muhammadu Buhari, who is also Nigeria’s Minister of Petroleum Resources, expressed frustration over how oil theft was affecting government revenue.

Pipeline vandalism and oil theft are causing Nigeria to export less crude oil. And that, in turn, translates into less revenue for the country, a stark reality for an economy that relies heavily on oil revenue.

A recently released report by the National Bureau of Statistics (NBS) showed that the oil sector in Nigeria in the second quarter of 2022 contributed next to nothing to the country’s 3.54% GDP growth.

According to OPEC, the Nigerian oil sector fell by 11.77% in the second quarter of 2022. It had also fallen by 26.04% in the first quarter of 2022, all because of the drastic reduction in oil production.

What do you think of these OPEC data? Does Nigeria’s excuse for losing 1st place make sense? We want to know your opinion, do not hesitate to comment and if you liked the article, share and give a “like / like”.

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Nigeria: issues 1.25 billion euros of Eurobonds

Picture: © 2017 Canstockphoto