New Telegraph

Nigeria’s Crude Oil Production Falls To 1.23mbpd In March

After struggling to meet its quota for months without success, Nigeria sadly crashed to the worst reduced production member of the Organisation of Petroleum Exporting Countries in March, 2024, according to OPEC Monthly Oil Market Report published yesterday. Nigeria held the most increased crude oil production country of OPEC for consecutive two months of December 2023 and January 2024 but lost it to Libya in February.

The country’s crude oil production performance became dismal in March as using direct communication, Nigeria’s oil production was 1.327mbpd in December; 1.427mbpd in January; 1.322mbpd in February and crashed to 1.231mbpd in March, representing an outrageous decline of 92,000b/d. OPEC said: “According to secondary sources, total OPEC-12 crude oil production averaged 26.60 mb/d in March 2024, 3 tb/d higher, m-o-m.

Crude oil output increased mainly in Iran, Saudi Arabia, Gabon and Kuwait, while production in Nigeria, Iraq and Venezuela decreased. The report read: In February, Nigeria witnessed a notable spike in its annual inflation rate, soaring to 31.7 per cent, the highest level seen in a decade. The primary drivers of this increase were food prices, which account for 51.8 per cent of the consumer price index. Additionally, substantial currency depreciation and a threefold increase in petrol prices in mid2023, compounded by domestic transport challenges, added to the inflationary pressures.

Following a 45 per cent devaluation of the naira in February, expectations point towards a continued upward trajectory in inflation in the coming months. “While the Central Bank of Nigeria (CBN) aims to curb inflation to 21 per cent by yearend, forecasts suggest that inflation rates will remain significantly elevated throughout 2024.

“Meanwhile, the Stanbic IBTC Bank Nigeria PMI stood at 51 in March 2024, marking its four-month low but maintaining the previous month’s level. Although business activity saw a slight uptick, overall expansion remained modest. The slowdown in growth of new orders can be attributed to substantial price hikes impacting demand.

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