Nigeria Oil Boosts Ease Fiscal Pressures
After a long period of underperformance, the Nigerian government has seen an improvement in oil export receipts after the nation’s oil production level increased over the months.
This has reduced fiscal pressures as revenue from hydrocarbon sakes still accounts for the largest chunk of overall income to the government. Nigeria’s oil production rose in the third quarter of 2023, the country’s National Bureau of Statistics said in a report Friday.
The country produced an average of 1.45 million barrels a day in the period, up from 1.22 million barrels in the second quarter. Despite the rise, production remains below Nigeria’s production capacity of 2.3 million barrels a day.
Output has faltered recently amid massive crude oil theft and pipeline vandalism. Federal Government earns more than 90% of its foreign exchange and 70% of government revenue from oil exports, according to the International Monetary Fund.