Nigeria’s crude oil revenue surged to approximately N50.88tn in 2024, according to findings by The PUNCH.
Data from the Nigerian Upstream Petroleum Regulatory Commission, a Federal Government agency, confirmed that Nigeria produced a total of 408,680,457 barrels of crude oil in 2024.
A report by Statista Research Department, a global statistical firm, published on January 9, 2025, revealed that the average price of crude in 2024 was $80.53 per barrel.
This would amount to $32.91bn when multiplied by the quantity of crude produced in Nigeria last year. At an exchange rate of N1,546 to the dollar, this translates to N50.88tn.
Including condensate, Nigeria’s total oil production for 2024 was 566.79 million barrels.
It is worth noting that Nigeria had initially projected a production of 649.7 million barrels of oil, based on an average daily output of 1.78 million barrels in its 2024 budget.
With the crude oil price set at $78 and the exchange rate assumed to be N750 to the dollar, the country had aimed to generate $50.68bn or N38.01tn from oil revenue last year.
Although Nigeria did not meet the 1.78mbpd oil target, it managed to exceed its projected revenue due to fluctuations in crude oil prices.
Furthermore, the depreciation of the naira against the dollar contributed to the increase in the naira equivalent of the revenue from oil sales last year.
It should be noted that the N50.88tn was the combined amount generated by the Nigerian National Petroleum Company Limited (NNPCL), international oil companies (IOCs), and indigenous oil producers from the sale of crude oil produced in Nigeria.
Several factors influence the allocation of this fund to the three tiers of government, NNPCL, IOCs, and indigenous oil producers, among others.
Throughout 2024, crude oil prices displayed a fluctuating trend, rising and falling at various intervals. Prices rose in March following attacks on Russian refineries by Ukrainian fighters.
From $82.44 on March 11, Brent crude increased to $86.87 in the subsequent days. Similarly, WTI crude, which sold for $78.13 per barrel on March 12, rose to $81.77 by March 13.
Murban crude also saw a rise, increasing from $82.78 to $86.90.
Nigeria’s Brass River and Qua Iboe crude were priced at $90.07 on March 13, up from $84.84 on March 11, according to Oilprice.com.
Before the passage of the 2024 budget, the Group Chief Executive Officer of the NNPC, Mele Kyari, expressed confidence that the crude oil production and price projections in the 2024 Budget were realistic and achievable.
Commenting on market dynamics in relation to the projected budget benchmark price of $77.96 per barrel, Kyari stated, “With what we see in the market today and potentially in the year 2024 and even beyond the next two years, it is very unlikely to see $70 per barrel oil in the market.
“The oscillation we are seeing, sometimes you do see prices coming down to $75 per barrel, and sometimes it goes above it; overall, benchmarks are averages. We think that the proposal by Mr President around the $77.96 is still realisable in 2024.”
