TheCable

The Organisation of the Petroleum Exporting Countries (OPEC) says Nigeria recorded the highest drop in oil production in August.

The global oil cartel said this in its monthly oil market report (MOMR) for September 2022. 

The report showed that Angola and Libya surpassed Nigeria as Africa’s highest crude oil producers.

According to the report, Nigeria’s crude oil production based on secondary sources for August stood at 1,100 barrels per day (tb/d), a decrease of 65,000 tb/d compared to July when it produced 1,164 tb/d.

It also said the country’s crude oil production based on direct communication for August was 972 thousand barrels per day, a drop of 112mpd from 1.084 million barrels per day in July.

The report added that Angola was Africa’s highest crude oil producer for the month, with production from 1.173 m/bd in July to 1.183 m/bd in August.

“Crude oil output increased mainly in Libya and Saudi Arabia, while production in Nigeria declined,” the report read.

The report further said Nigeria’s real gross domestic product (GDP) expanded by 3.5 percent year-on-year in the second quarter of 2022, following growth of 3.1 percent in the first quarter of 22. 

“The expansion was mainly driven by the non-oil sector, which grew by 4.8 percent year-on-year, ” the report added.

“On a quarterly basis, the GDP shrank by 0.37 percent following a 14.66 percent contraction in the previous quarter. Nevertheless, the annual inflation rate surged to the highest since September 2005, climbing to 19.6 percent year-on-year in July from 18.6 percent in June.

“This was a result of the weakening naira due to continued high imported input costs as well as soaring fuel prices. Moreover, food inflation increased to 22 percent year-on-year, the highest since May 2021.”

Last week, TheCable reported that Nigeria’s oil production dropped to an all-time low in August with 972 t/bd.

Oil theft and vandalism are among the key issues affecting Nigeria’s crude production figures.