Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says oil output dropped to an average of 1.24 million barrels per day (bpd) from 1.25 million in February 2022.
Gatekeepers News reports that NUPRC made this known in its latest crude oil and condensate production data for March 2022.
According to the data, the figure represents a 0.80 per cent decrease from February representing the lowest production capacity so far in the year.
This indicated that the country is producing below 1.4 million barrels per day in 2022, failing to meet its Organisation of Petroleum Exporting Countries (OPEC) quota of about 1.8 million bpd.
The development is coming on the heels of controversies surrounding the actual volume of oil that ended in the hands of illegal bunkers.
Meanwhile, the decline in oil output also depleted revenue accrued to the federation account amid zero remittances from the Nigerian National Petroleum Company (NNPC) Limited despite soaring oil prices.
In March, the Minister of State for Petroleum Resources, Timipre Sylva outlined poor investment and the exit of oil majors as major issues affecting Nigeria’s inability to meet the oil production quota.
On the other hand, NUPRC noted the country lost more than 115,000 barrels per day (bpd) to oil theft and vandalism between January 2021 and February 2022, which amounts to $3.27 billion worth of crude oil.
Last week, President Muhammadu Buhari requested the House of Representatives to adjust the 2022 fiscal framework to include an increase in the projected oil price benchmark, from $62 per barrel to $73 per barrel, up by US$11 per barrel.
President Buhari also asked for a reduction in the projected oil production volume by 283,000 barrels per day, from 1.883 million barrels per day to 1.6 million barrels per day.
