NECA: Nigeria Losing Nearly $2.5 Billion Every Month on Underproduction

SEATTLE (Oil Monster): The Nigeria Employers’ Consultative Association (NECA) noted that the country has been losing approximately $2.5 billion every month by not able to attain sanctioned Organization of Petroleum Exporting Countries (OPEC) daily production target of 1.8 million barrels per day.

The statement by Adewale-Smatt Oyerinde, Director-General, NECA said that the country has been recording gradual growth in oil production over the past few months. The oil production hit 1.23 million barrels per day in December 2022. This is still short of the allocated target by 0.57 million barrels per day. At current prices, this translates to a monthly loss of around $2.5 billion.

NECA noted that oil theft in the country continues unabated despite steps taken by the federal government. The subsidy on petroleum products continue to eat into government’s revenue. It called upon the federal government to come up with implementation of policies aimed at rejuvenating the country’s economy. In addition, it should also explore strategies to boost revenues by reviving the non-oil sectors.

Raising taxes in order to boost revenues will have the opposite of the desired effect. It must be noted that the country already has over 50 different taxes, levies and fees.