Nigeria’s oil production hits its lowest point so far at 972,394 barrels per day

In the month of August, oil production in Nigeria reached an all-time low. The global pandemic-related economic recovery that looked optimistic at the start of the year has since started to deteriorate.

Demand, supply, and production factors have produced some unsettling statistics. There were 1.219 million BPDs reported in April of this year. Production numbers decreased to 1.024 million BPD the next month. Oil theft and pipeline vandalism are both contributing factors to the fall in oil production.

The latest crude oil and condensate production data for August 2022, which were released by The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), revealed that oil production for the month of August fell below the 1 million BPD threshold, coming in at 972,394 barrels per day (BPD).

According to a report by Nairametrics, the oil sector contracted by 26.04% in Q1 2022 but declined by 11.77% year over year in Q2 2022. Following the fall in crude oil production capacity, the sector’s GDP shrank.

Oil production decreased from an average of 1.61 million BPD in Q2 2021 to 1.43 million BPD in Q2 2022. This is a decrease from the 1.49 million BPD in the first quarter of 2022.

A 1.2% gain from Q1 to Q2 was seen in agriculture, which has contributed about 22% of Nigeria’s GDP since the year’s beginning. From 22.36 to 23.24% of total GDP, it increased dramatically.

On Wednesday, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) said that it will cease operations if concrete steps were not taken to combat oil theft. Similar worries have been voiced by other private oil industry participants, with some even going so far as to withdraw their investments.

That this terrible result has reduced government spending is a given. The selling of petroleum is a major source of income for Nigeria.

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