EconomyFact Check

Nigeria, Venezuela, not only OPEC countries unable to meet oil quota as Peter Obi claimed

Claim: Nigeria is the only OPEC country, apart from Venezuela, that could not meet its oil quota. 

Verdict: False! While Nigeria could not meet up with its oil quota, there are other countries that are also unable to meet the OPEC benchmark.  

Full Text

The presidential candidate of the Labour Party (LP), Peter Obi, and his running mate, Datti Baba-Ahmed, on January 8 appeared on Channels Television Town Hall meeting to discuss their action plan for Nigerians if elected. 

During the session, the LP flag-bearers were given the opportunity to answer questions from many Nigerians across the country. 

Mr Obi spoke on different aspects of the economy that need improvement and what his government will do differently. 

He also spoke on the issue of security, power and other sectors. 

While addressing the issue of oil theft in Nigeria, Obi said the country had not been able to meet the oil production quota set by the Organisation of Petroleum Exporting Countries (OPEC). 

Nigeria is said to have lost about N1.3 trillion to oil theft between January and August 2022, according to the ad-hoc committee set up by the Senate to investigate oil theft. Meanwhile, there have been a lot of clampdowns on oil thieves and vandals in recent times.  

“Oil, which ordinarily is your (Nigeria’s) main source of foreign exchange income, is now being stolen. You (Nigeria) are the only OPEC country apart from Venezuela that could not meet your quota because people in government are stealing the oil,” Obi had said while answering a question on measures to be adopted to help the country with a stable exchange rate. 

But is this true?

Verification

Nigeria became a member of the Organisation of Petroleum Exporting Countries (OPEC) in 1971 and has been described as the most populous country within OPEC.

The oil quota for Nigeria set by the Organisation of Petroleum Exporting Countries (OPEC) is 1.8 million barrels per day (BPD) from November 2022 to December 2023.

However, the country could not meet its oil production quota for November 2022, according to data by OPEC. The country’s oil quota for the month stood at 1.18 million (OPEC crude oil production based on direct communication, tb/d million BPD).  

The figures were contained in the organisation’s Monthly Oil Market Report (MOMR) released in December 2022.

Meanwhile, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) noted that Nigeria’s crude oil production increased to 1.23 million BPD in December 2022, according to its crude oil and condensate production data for the month. 

In its January 2023 MOMR, OPEC also confirmed that the country experienced 50 month-to-month change from 1.18 million BPD in November 2022 to 1.23 million BPD in December 2022. 

Despite the increase, Nigeria still falls short of its 1.8 million BPD quota set by OPEC.

Further checks, however, showed that Nigeria is not the only OPEC country that could not meet its daily oil quota in the listed period. 

The figures revealed that Angola, Saudi Arabia, UAE, and Iran, among others, also fell short of their required oil quota.

OPEC data show that Angola produced 1.08 million BPD against the set quota of 1.5 million BPD; Saudi Arabia fell short of its 11.4 million BPD target to produce only 10.4 million BPD in the same month, while the UAE produced 3.043 million BPD against the set 3.17 million BPD. 

Similarly, Iraq produced 4.4 million BPD against the set 4.6 million BPD.

Findings show the organisation had no oil quota for Venezuela in its 2022 MOMR. It only noted that the country produced 693,000 BPD in November 2022 and 669,000 BPD in December 2022. 

Despite its large oil reserves, Venezuela has failed to meet the OPEC oil quota, partly due to its political and economic crisis.

Conclusion

The claim that Nigeria and Venezuela are the only countries that could not meet their oil production quota set by OPEC is false. There are other countries that could not meet their targets. 

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