Lagos — As oil prices surged over $51 on Wednesday on hope that the oil market is recovering from the adverse effects of the COVID-19 pandemic, indications are that Nigeria is earning $11 per barrel on its crude oil sales.
The Federal Government projected oil price at $40 per barrel in the nation’s 2021 budget, which has now been surpassed in the oil price rise following the COVID-19 vaccine discovery.
Nigeria’s proposed revenue and expenditure, according to the 2021 budget,
With oil prices currently climbing over government’s revenue projection, indications are that the country could earn more from oil exports in the New Year if the current oil price level remain throughout the year.
While Nigeria’s daily oil production for 2021 is benchmarked at 1.86 million barrels per day, data from the Organization of the Petroleum Exporting Countries, OPEC’s, Monthly Oil Market Report, MOMR, for December puts Nigeria’s current production at 1.3 million barrels per day, with over 500 thousand production milestones to cover.
Nigeria’s oil sector contributes about nine percent to its Gross Domestic Product, GDP. Between July and September 2020, the oil industry contributed about 8.73 percent of the total real GDP, a one percent drop compared to the same period of 2019.