Official government data showed that Nigeria’s oil output continued to fall in September as some onshore production almost halted.
Specifically, Nigeria produced a daily average of 1.14 million barrels of crude oil and condensate in September, about 42,000 barrels fewer than in August. Data from the Nigerian Upstream Petroleum Regulatory Commission also shows that output has declined steadily since 1Q20 when Nigeria produced roughly double the amount.
The government has attributed the lower output to rampant theft and vandalism on pipelines that crisscross the Nigeria delta. The lower oil output translated into Nigeria not being able to take advantage of the windfall of higher-than-expected oil prices to boost foreign currency earnings. And as a result, lower oil earnings mean that Nigeria has been unable to bolster its foreign currency reserves which have come under pressure due to continued central bank intervention to prop up the naira.