Following the decision by the Organization of Petroleum Exporting Countries (OPEC) to cut production by an additional 2.2 million barrels per day, Nigeria will produce about 1.584 million barrels of crude oil per day by January 1, 2009, far below the 2.29 million barrels per day production estimated in the 2009 budget.
Lagos-base Business Day reported on Thursday that in November, following a 113,000 barrels -per day cut, Nigeria produced 1.903 million barrels per day, according to a figure given in the organization's Oil Market Report for December.
With another 319,000 barrels per day OPEC cut for Nigeria which takes effect January 1, the nation's crude oil export will dip to 1.584 million barrels per day.
Meanwhile, oil rose just a bit over 40 U.S. dollars on Monday, reinforcing the fact that the Nigerian economy will face turbulent times in 2009.
With the OPEC production cuts and falling prices, many of federal government's projections in the 2009 budget might not be met except prices rise again.
Nigeria has also based its 2009 budget on 45 U.S. dollars per barrel for its oil revenues as the international oil price has crashed to slightly more than 40 U.S. dollars per barrel this week.
According to local media reports, oil money accounts for more than 95 percent of Nigeria's export gains and over 80 percent of the federal government revenues, contributing to approximately 30 percent of the Africa's most populated country's total GDP.
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