13 August 2012, Sweetcrude, LAGOS – CURRENT improvement in Nigeria’s crude oil production to 2..7 million barrels per day may lead the country to reap increased revenue from oil during the year.
Mr. Bismarck Rewane, Managing Director, Financial Derivatives Limited, said in a presentation contained in the latest edition of the FDC Economic Bulletin released at the weekend, that the impressive production data, added to the expected passage into law of the Petroleum Industry Bill, will likely raise Nigeria’s oil revenue by 20 percent at the end of the year.
This came after last week’s announcement by Mr. Andrew Yakubu, Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, that Nigeria’s oil output has hit a record 2.7 million barrels per day.
“We believe the outlook for Nigeria’s crude oil production is positive.
The combined effect of the relative peace in the Niger Delta region and the likely passage of the PIB will result in an increase in oil production.
“The impact of this will be an increase in oil revenue by 20%, an accretion in external reserves to $42.5 billion, and a reduction in fiscal deficit to an estimate of 2.5%. The overall impact will be a sharp appreciation in the naira to N152-153/$1,” he said.
Rewane’s presentation put the expected government’s revenue for the month of September at N906.9 billion.
