Contrary to a preliminary estimate by Reuters that Nigeria’s crude oil output increased to 1.6m barrels per day (b/d) in March but in line with analysts’ expectations as projected on March 6, official data by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that Nigeria’s oil production dropped to 1.268mb/d without condensates and 1.517mb/d with condensates in March 2023. The country’s oil output dropped by -2.92% without condensates from 1.306mb/d and dropped by -1.96% with condensates from 1.547mb/d in February. Although marking the first decline in seven months, it nudged the country away from meeting its budget estimate of 1.69mb/d and OPEC quota of 1.8mb/d in the first quarter of the current year. Analysts have argued that the country’s oil output may fall in March due to the explosion from an illegal oil bunkering site in Rumuekpe community of Emohua Local Government Area in Rivers State. They argue that oil companies may also slow down their oil pumping while new investors will remain conscious of investing in the country’s oil sector. Analysts call for regulatory actions that compel the oil companies to internalize security architecture against theft, pipeline vandalism, and diversions (see chart 1 below)
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