Federal Government To Generate More Money As Oil Prices Nears Record High Of $120 Per Barrel

The development comes after the Federal Government of Nigeria agreement with Organization of the Petroleum Exporting Countries (OPEC) and it allies to increase their combined output by 400,000 barrels per day (bpd) as the conflict between Russia and Ukraine continues.

Under the new agreement, Nigeria is expected to produce 1.735 million bpd, higher than the 1.72 million for March bpd and 1.70 million bpd for February.

This good news is coming as oil prices raced to as high as $117 per barrel on the early hours of Thursday, 3rd March 2022.

Should Nigeria in any way meet its production quota for April and sell it could be earning a whopping $200.6 million(N86.6 billion) every day should oil hit $120 per barrel.

Although, in the budget, 2022 Nigerian government proposed a total oil production level of 1.88 million bpd very much unlikely for Nigeria to meet its production quota for April as it continues to hover around 1.2 million, 1.3 million barrels per day production.