Nigeria 
Nigeria might be leaving OPEC

afrol News, 21 July - According to sources close to the Organisation of the Petroleum Exporting Countries (OPEC), Nigeria might be leaving the cartel within few months. Africa's biggest oil producer is reported to be annoyed by the low export quotas given by OPEC; far below Nigeria's export ambitions.

According to a report in 'The Independent on Sunday', which had been in contact with sources within OPEC, Nigeria is threatening to leave the oil cartel already in its annual meeting in Osaka in September. Nigeria is OPEC's fifth-biggest producer and its resignation could therefore trigger a period of instability in the world oil market, probably resulting in lower prices. 

Nigeria has been annoyed by OPEC policies for a long time. The cartel sets production quotas for member countries to regulate market prices. It has at several occasions accused Nigeria of "undisciplined policies" and over-production as the country refuses to publish its production numbers.

Over the last half year, however, Nigeria and OPEC agree that Nigeria has cut back its productions to meet OPEC quotas. Nigeria thus has not seen positive effects of the risen oil prices as exports have been lowered. This has caused some bad feeling in Nigeria, especially as elections are approaching.

OPEC last year claimed that Nigeria was producing 300,000 barrels of oil per day above its assigned daily quota of 1.8 million barrels. In March, the government for the first time confirmed reports by its oil producers, saying it had cut back production by 180,000 barrels per day in January and was continuing to make further cuts. National oil production data are however classified as a national secret.

OPEC, which was founded in 1960, is "committed to order and stability in the market," according to Nigeria's Presidential Adviser on Petroleum and Energy, Rilwanu Lukman. OPEC consists of eleven oil-producing and exporting countries, from Africa, Asia, the Middle East, and Latin America. Nigeria is the last member to join the cartel; in 1971. 

Nigeria's economy is heavily dependent on its oil exports, constituting 45 percent of the country's GDP and about 85 percent of all foreign exchange earnings. Little of these revenues have however reached the Nigerian population, and estimated 66 percent falling below the poverty line of about a dollar a day (up from 43 percent in 1985).

Sources: Based on press reports, OPEC and afrol archives

 

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