August 03, (THEWILL) – The Organization of Petroleum Exporting Countries, OPEC, and its allies, have increased Nigeria’s oil quota to 1.830 million barrels per day, mb/d in September 2022, from 1.826 mb/d in August 2022.
This was part of actions, targeted at achieving increased stability in the global oil market.
Consequently, prices of many crudes, including Nigeria’s Bonny Light, bounced back to over $100 per barrel in the global market
But it was doubtful if Nigeria, currently producing about 1.4 mb/d, including condensate, would meet its target because of increased pipeline vandalism, oil theft and illegal refining in the Niger Delta.
Recently, Group Chief Executive Officer of Oando Plc, Wale Tinubu, said 20 percent of oil production is lost to oil theft, reflecting Nigerian government’s inability to prevent sabotage on oil pipelines.
Tinubu explained that the oil theft was making it impossible for the country to reach its previous 1.4 million barrels per day quota handed to it by the Organisation of the Petroleum Exporting Countries (OPEC).
Chairman of UBA Banking Group and Heirs Holdings, Tony Elumelu, last March stated that the reason Nigeria cannot meet its crude oil production quota and benefit from high oil prices is due to theft.
Elumelu in a series of tweets bemoaned pressing issues that Nigerians face every day from electricity to fuel.
He urged that by 2023, Nigeria must be on a strong trajectory for progress and development to take place.
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
