ENUGU, Nigeria (VOICE OF NAIJA)- In the lead-up to the 2024 fiscal year, renewed optimism envelops the revenue forecast with Nigeria’s Bonny Light oil price surging to $81.11 per barrel, a significant climb from last week’s $78 per barrel.
This rise, exceeding the 2024 budget reference price of $77.96 per barrel by $3.15, breathes new life into the nation’s N26 trillion budget, originally based on the aforementioned benchmark and a daily output of 1.78 million barrels.
Recent fluctuations in oil prices had posed a threat to the budget, with a downward trend unsettling the stability of the budget benchmark in the past two weeks.
The spike to $81.11 per barrel, triggered by Red Sea attacks causing shipping disruptions, sparks speculation in favor of sustained high prices.
Despite this positive development, concerns loom as the Nigerian Upstream Petroleum Regulatory Commission reports a 7.4 percent decline in oil output to 1.25 million barrels per day in November 2023, down from 1.35 million bpd in September 2023.
This shift in the pressure point to output levels raises potential challenges in realizing targeted revenues for 2024.
In response to these challenges, the newly appointed board and management team of the Nigerian National Petroleum Company Ltd (NNPCL) express their commitment to producing two million barrels of crude oil daily from 2024.
NNPCL Chairman, Pius Akinyelure, emphasizes their dedication to overcoming obstacles and transforming the oil and gas industry into a leading force in Africa and globally.
The Chairman of NNPCL, Pius Akinyelure, stated: “We have just concluded our inauguration ceremony by Mr President and we have assured him of our collective efforts to turn around the fortune of the Oil and Gas.
”And to make it a company that we will all be proud of and a company that will help sustain the economy and make sure we create some element of prosperity for Nigerians. He (President) has assured us of his support and on our own part too, we have given him our one 100 per cent assurance.
“We will do the best we can to make sure that the key performance in the oil and gas industry in Nigeria probably will become number one in Africa and probably compete with the leading oil and gas industry around the world.
“It is not an easy task but we know we had the challenge of oil stealing, vandalisation of our pipelines. Our commitment is to produce at the rate of two million barrels per day anytime from next year’’.
Additionally, Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri, expresses confidence in surpassing the 2024 budget target of 1.7 million barrels per day, signaling a collective effort to enhance oil production and bolster the nation’s economic prosperity.