Nigeria’s crude oil revenue In 2024 surged to approximately N50.88 trillion.
Data from the Nigerian Upstream Petroleum Regulatory Commission revealed that the country produced a total of 408,680,457 barrels of crude oil that year.
A report by Statista Research Department on January 9, 2025, revealed that the average price of crude oil in 2024 was $80.53 per barrel.
When multiplied by Nigeria’s total crude production of 408,680,457 barrels, this amounts to $32.91 billion. At the exchange rate of N1,546 to the dollar, this translates to N50.88 trillion in revenue for the country.
With condensate included, Nigeria’s total oil production in 2024 amounted to 566.79 million barrels.
This is below the country’s target of 649.7 million barrels, which was based on an average daily output of 1.78 million barrels set in the 2024 budget.
Putting the crude oil price at $78 and the exchange rate at N750 to a dollar means the country had planned to generate $50.68bn or N38.01tn from oil last year.
Although Nigeria fell short of its 1.78 million barrels per day oil target, it still surpassed its revenue expectations due to fluctuations in crude oil prices.
Additionally, the decline of the naira against the dollar played a significant role in increasing the naira equivalent of the earnings from oil sales in 2024.
It is important to note that the N50.88 trillion was the total revenue 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 how this fund is allocated among the three tiers of government, NNPCL, IOCs, indigenous oil producers, and other stakeholders.
In 2024, crude oil prices followed a fluctuating pattern, rising and falling at intervals. Prices surged in March after Ukrainian fighters attacked Russian refineries. On March 11, Brent crude was priced at $82.44 per barrel, but by the following days, it had risen to $86.87.
Similarly, the price of WTI crude increased from $78.13 on March 12 to $81.77 on March 13. Meanwhile, Murban crude rose from $82.78 to $86.90 during the same period.
From $82.44 on March 11, the Brent crude rose to $86.87 in the following days.
The WTI crude, which sold at $78.13 per barrel on March 12, sold at the rate of $81.77 as of March 13.
Similarly, the Murban crude increased from $82.78 to $86.90.
Nigeria’s Brass River and Qua Iboe crude oils were priced at $90.07 per barrel as of Monday, up from $84.84 on March 11, according to Oilprice.com.
However, in September, Brent crude oil futures dropped below $70 per barrel, marking the first time since December 2021 that prices had fallen to such a low level.
Brent fell by 2.75 per cent to $69.08. The West Texas Intermediate crude dropped by 2.99 per cent to $65.71. Nigeria’s Brass River and Qua Iboe dropped to $74.57 per barrel from $80 as of September 3.
Meanwhile, In December 2024, the average price of one barrel of Brent crude oil was $74, according to Statista.
Before the passage of the 2024 budget, NNPC Group Chief Executive Officer, Mele Kyari, expressed confidence that the projections for crude oil production and the price benchmark for the budget were both realistic and achievable.
Discussing the market dynamics in relation to the projected 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 to the 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.”
Regarding the crude oil production projection, Kyari stated, “The number we have is 1.785mbpd. This is cumulative of all oil produced in the country. This figure is inclusive of all production including crude oil and condensate.
“I need to make this clarification because of the reports in the media that our OPEC quota is 1.5mbpd. The OPEC quota is related only to crude oil. We also do between 250,000 to 300,000 barrels per day of condensate in our production. When you combine the two, the 1.78mbpd is realistic and realisable.”
