Nigeria’s crude oil export revenues slumped by as much as 98 percent from March to April this year because of movements in the price of gasoline, the Nigerian National Petroleum Corporation said, as quoted by local media.
“No remittance to Federation Account in April for May 2021 FAAC due to recorded value shortfall resulting from difference between the landing cost and ex-coastal price of Premium Motor Spirit recorded in March 2021,” the NNPC said as quoted by the Punch.
The April revenues from oil exports stood at $1.764 million (723 million naira), according to the NNPC, versus $87.14 million (35.72 billion naira) for March.
Exports of crude in March totaled 66.67 million barrels, out of 7.62 billion barrels lifted during the month, according to the report. The NNPC noted it had stuck to its OPEC+ production quota of 1.52 million bpd during the reporting month.
Despite the OPEC+ agreement, Nigeria is looking to boost its oil production over the long term. Earlier this month, it took a big step in that direction when it inked a deal with Shell, Exxon, Total, and Eni to develop an offshore oil block that includes the deepwater Bonga field.
According to the NNPC, the deal could unlock up to $10 billion in new investments in Nigeria’s oil industry. It could also add 150,000 bpd to the country’s oil production, bringing the total output from the block—Oil Mining Lease 118—to 350,000 bpd.
The oil and gas industry in Africa’s largest oil producer accounts for a tenth of gross domestic product, with oil export revenues accounting for as much as 86 percent of total export revenues. The government has plans for the launch of as many as 100 new oil and gas projects over the next five years, of which 25 upstream oil and gas projects