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N/Delta militancy weakens oil industry forex inflow to $447m

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Regular high degree attacks on oil installations by militants in the Niger Delta have resulted in a decrease of about $447m in foreign exchange inflows from $1.4bn in September to $957.3m in October.

The scenarios also tends to rubbish all the dialogues with the elders of the region even as experts say government has not yet started talking with the command and control unit of the militant groups.

Statistics provided by the Central Bank of Nigeria (CBN) show that the $447m decline represents a drop of 31.85 per cent as the total outflows also decreased during the period, dropping significantly by $1.44bn or 58.68 per cent from $2.46bn to $1.02bn during the same period

The price of crude oil currently hovers between $53 and $54 per barrel and the country may be losing much in terms of volume as a result of the persistent attacks on oil installations.

This, according to findings, has resulted in a decline in oil production to about 1.6 million barrels per day as against the budgeted production volume of 2.2 million bpd.

Based on the current daily crude oil output of 1.6 million bpd at the price of $51 per barrel, the country is currently earning a total of $81.6m as against $112.2m, which it could have earned had 2.2 million bpd been produced.


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