The World Bank has said Nigeria’s oil production dropped in 2021 as a result of inadequate maintenance and the loss of infrastructure efficiency.
The bank noted that Nigeria was yet to gain from increasing oil prices as a result of declining oil production and fuel subsidy.
The World Bank, in a new report, said, “Nigeria has not been able to benefit from higher oil prices to date as: oil production declined in 2021 due to lack of maintenance and loss of infrastructure efficiency; and domestic petrol prices remain fixed—increasing the cost of the ‘Premium Motor Spirit’ subsidy, a large and growing fiscal burden.”
In a different World Bank report, titled ‘Global Flaring and Venting Regulations: 28 Case Studies from Around the World’, it was disclosed that within almost a decade, oil production dropped by 40 per cent in Nigeria.
“Nigeria’s oil production fell by nearly 40 per cent from 2012 to 2021. During this period, the flaring intensity barely changed. The volume of gas flared declined broadly in proportion to oil production, falling 25 per cent, from 9.6 bcm to 6.6 bcm. There were 166 individual flare sites in the last flare count, conducted in 2019,” the report partly read.
According to the bank, Nigeria has a shortfall of 500,000 barrels per day, while Angola and Russia both have a shortfall of 300,000 barrels per day.
The bank said, “At present, the largest shortfalls are in Nigeria (0.5 mb/d) and Angola and Russia (each 0.3 mb/d). Production has been affected by a variety of temporary factors including maintenance (Kazakhstan and Libya), protests (Kazakhstan), sabotage (Nigeria), and bad weather (Iraq, Libya).”
Earlier in April 2022, it was reported that the OPEC raised Nigeria’s oil production quota from the 1.735 million barrels per day target approved in April 2022 to a new target of 1.753 million barrels per day for May 2022.