Nigeria's Oil Revenues Decline 13% in 2023 as Global Prices Drop- OPEC

OPEC said its oil revenues slumped by 18% last year, as crude prices cooled and the group embarked on new production cuts to balance global markets.

OPEC member Nigeria which exported an average of 1.48 million barrels a day realised crude export revenues of $46.2 billion in 2023 down 13.4% from $53.45 billion in 2022 when production was 1.39 mbpd but Brent prices averaged $101.1.

Collectively, the OPEC oil revenues from petroleum exports dropped by $148.9 billion to $679.7 billion in 2023, after a surge the previous year, OPEC said in its Annual Statistical Bulletin on Tuesday.

Group leader Saudi Arabia — which shouldered the bulk of additional supply curbs — suffered the second-biggest drop in percentage terms, retreating by 24% to $248.4 billion. Equatorial Guinea saw the biggest revenue drop, collapsing by 44% as its output plunged.

Brent crude futures averaged 17% lower in 2023, at about $82 a barrel. Prices had climbed the previous year following the invasion of Ukraine by Russia, which is part of a wider coalition of producers known as OPEC+.

Nigeria has been unable to meet its OPEC+ quota for at least a year.

The nation pumped about 1.45 million barrels a day of crude and liquids in April, still far below its estimated production capacity of 2.6 million barrels a day.

Crude theft, aging oil pipelines, low investment, and divestments from oil majors operating in the West African nation have all contributed to declining production.