The rise in global oil prices could brighten Nigeria’s outlook this year, the Organisation of the Petroleum Exporting Countries said in a new report.
The international oil benchmark, Brent crude, reached the $60 per barrel mark for the first time in over 12 months.
It traded around $61.28 per barrel as of 3:54pm Nigerian time on Friday, more than $20 higher than the Federal Government’s benchmark for the 2021 budget.
The 2021 budget, which was signed by the President, Major General Muhammadu Buhari (retd.), on December 31, was based on an oil price benchmark of $40 per barrel and a production level of 1.86 million barrels per day.
OPEC’s monthly oil market report for February showed that Nigeria’s crude oil production rose 208,000 barrels to 1.38 million barrels per day in January from 1.17 million bpd in December, based on direct communication.
The group uses secondary sources to monitor its oil output, but also publishes a table of figures submitted by its member countries.
According to secondary sources, Nigerian crude production fell slightly to 1.34 million bpd in January from 1.37 million bpd in December.
OPEC’s total crude oil production averaged 25.50 million bpd in January 2021, up by 0.18 million bpd month-on-month.
It said, “The meaningful rise in oil prices following the recent DoC (Declaration of Cooperation) decisions, along with a positive trajectory from COVID-19 vaccines, could brighten the 2021 outlook and lay the groundwork for a hopeful medium-term real GDP expansion.
“Moreover recent data showed that consumer confidence in Nigeria increased to -14.80 points in 4Q20 from -21.20 points in 3Q20.”
The group, however, noted that the recent Central Bank of Nigeria composite Purchasing Managers’ Index for the manufacturing sector edged down to 49.6 in December from 50.2 in November, signalling a renewed contraction in the country’s manufacturing activity.