Edun: Crude oil output now 1.65m bpd — it will bring in more FX inflows

The federal government says oil production has increased to 1.65 million barrels per day (bpd), from 1.25 million bpd in June 2023.

Wale Edun, minister of finance and coordinating minister of the economy, according to NAN on Wednesday, spoke in Abuja at a podcast hosted by Bruit Costaud in collaboration with Ballard Partners of USA.

With the increase in production, Edun said crude oil is one source of bringing in dollars without causing inflation.

“The prices are still elevated and as you know in June 2023, the oil production and sales were roughly 1.25 million barrels per day,” he said.

“Now, it is up to 1.65 million barrels per day, that is one source of bringing in dollars and revenue into the government coffers that is non-inflationary.”

Edun also said an increase in oil revenue would provide funds for critical infrastructure.

“This is quickest way of giving the government the needed revenue to address our urgent needs,” he said.

“The government doesn’t have enough revenue for critical infrastructure and social services which are crucial to Nigerians now.”

The minister added that earnings from the non-oil sector and revenue from taxation are equally vital to the government.

“If you know about Mr President’s antecedent, the first thing he did in Lagos as governor was to get hold of the revenue,” Edun said.

“What he did was to deploy digitisation.  He used the latest technology to block the leakages and to improve the efficiency of monitoring and collection. This is exactly the same thing we are doing at the federal level now.

“The revenue of the federal government has been totally revamped.”

He said technology has been applied to ensure what is due to the federal government, particularly from its various revenue-earning arms, agencies, companies, and enterprises is not taken.

Edun said plans are underway to provide incentives to small, medium, and large businesses.

However, despite Edun saying oil production has increased to 1.65 million barrels per day, the Organisation of Petroleum Exporting Countries (OPEC), on March 12, said Nigeria’s average daily crude output dropped to 1.32 million barrels per day (bpd) in February.

It fell by 105,000 bpd from 1.42 million bpd recorded in January.