As Africa’s largest crude oil producer, Nigeria’s track record when it comes to production output have over the last few years been a source of concern. Various issues such as insecurity, sabotage and oil theft have often derailed the country’s production output which directly impacts its economy and as the past few months have shown, ability to earn foreign exchange. There may be some form of light at the end of the proverbial tunnel: Nigeria’s export terminals are set to resume production to fulfill the future’s contract for the Forcados and Bonga streams. In July, Forcados will load 263,000 barrels per day up from 245,000 in June while Bonga will load 123,000 – less than 127,000 it’s billed to do in the same month. However, this is coming just as it’s being reported that the output of Nigeria’s oil production is regarded low in official quarters. The Minister of Finance Zainab Ahmed has disclosed that the revenue accruing from these low outputs is barely enough to cover the country’s cost of importing refined petroleum products. Business Edge takes a lot at the realities surrounding Nigeria’s crude oil production output as Desmond Agbofio, energy expert and CEO of Desytone Energy joins Tolulope Adeleru-Balogun from Nigeria’s capital city Abuja.
The oil and gas industry is central to Nigeria’s economic wellbeing and the last half year has painted a rather dire picture. “The planned production for the country from the budget office was 1.8 million barrels per day. That wasn’t achieved… and [the country] managed to deliver 1.6 million bpd… From the first quarter of this year [the country] had just 1.5, 1.4 million barrels per day,” Agboifo says, adding that this almost automatically affects the country’s spending structure.
Watch the full interview above.