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Forex Inflow Drops By $447m On Oil Facility Attacks

By Dipo Olowookere

Central Bank of Nigeria (CBN) has disclosed in its latest data that activities of Niger Delta militants on oil installations in the region caused a decline of about $447 million in foreign exchange inflows from $1.4 billion in September to $957.3 million in October 2016.

It was revealed that the total outflows also decreased during the period, dropping significantly by $1.44 billion from $2.46 billion to $1.02 billion during the same period

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This caused a decline in oil production to about 1.6 million barrels per day as against the budgeted production volume of 2.2 million bpd.

At the moment, the price of crude oil hovers between $53 and $54 per barrel and the country may be losing much in terms of volume as a result of the persistent attacks on oil installations.

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Based on the current daily crude oil output of 1.6 million bpd at the price of $51 per barrel, the country is currently earning a total of $81.6 million as against $112.2 million, which it could have earned had 2.2 million bpd been produced.

However, the Federal Government is still holding dialogues with Niger Delta leaders in a bid to stop the incessant attacks.

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Not too long ago, President Muhammadu Buhari held a meeting with stakeholders from the region, where they presented their demands.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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