by John Campbell
On Wednesday in Abuja, the group managing director of the Nigerian National Petroleum Corporation (NNPC) stated that in 2016, pipeline vandalism resulted in roughly 700,000 barrels per day (bpd) being “deferred.” Accordingly, production was 1.3 million bpd rather than the projected 2.2 million bpd, costing the country about $13.3 billion in revenue (at an average price of $52 per barrel).
While Nigerian statistics can be problematic, those used by the managing director are likely to be the best available. Oil provides more than 70 percent of the revenue of Nigeria’s government at all levels (this figure has been as high as 90 percent in the past), and more than 90 percent of its foreign exchange. At a time when international oil prices were relatively low and the country was in recession, the fall in oil production due to pipeline vandalism is especially serious.
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Source: https://www.cfr.org/
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May 24, 2023 No Comments
