Nigeria, Africa’s 3rd highest oil producer

Nigeria, Africa’s 3rd highest oil producer
Photo by WORKSITE Ltd.- Ask Nigeria

Nigeria loses 470,000 barrels of oil to theft and vandalism, daily.

According to regulators, Nigeria has lost its status as Africa’s largest crude oil producer to Angola due to the daily loss of 470,000 barrels of crude oil to theft and pipeline vandalism. The most recent oil market report by the International Energy Agency, which was released last week, further stated that the decline in the country’s production of crude oil has led to its drop to the third position among the largest crude-producing countries in Africa.

The challenge with oil thefts and vandalism makes it difficult for the country to meet up with the 1.8 million barrels per day (bpd) production quota set by the Organization of Petroleum Exporting Countries (OPEC). OPEC stated that with the decline, Angola and Libya has overtaken Nigeria in oil output. President Muhammadu Buhari also lamented that the crisis that has befallen the country’s revenue is an effect of activities of dishonest citizens through the theft of the main contributor to Nigeria’s revenue base crude oil.

The crude output of the country in August averaged 972,394 bpd.

In a bid to tackle the challenge currently confronting the country’s crude oil, security forces stated that they would step up a crackdown on the thieves in the Niger Delta region, the country’s oil-rich state. Between April 2022 to September 2022, over 100 thieves have been arrested, while the authorities have also seized oil assets worth about 30 billion Naira ($70 million). To ensure a stop to the operation of illegal refinery sites, the Nigerian Navy has confirmed non-stop operations in all its bases in the Niger Delta.

For several years, theft and pipeline vandalism has crippled the Nigerian oil sector, without reverence to the government and rendering every security measure useless. Resultantly, experts believe that there is an unprecedented economic impact on the finances and economy of the country, which happens to be the largest in Africa. The government data reports that the crude output of the country in August averaged 972,394 bpd, revealing a multi-decade reduction. Asides theft and vandalism, factors like severe underinvestment in the oil sector and spills from damaged pipeline has affected the oil production capacity of Nigeria.

FG launched a mobile application to monitor oil theft.

Local authorities have allegedly said that Nigerian security forces are accomplices with the oil thieves, while the Nigerian Navy also claims that people with in-depth knowledge about the oil industry are likewise involved in the theft. The Navy’s spokesman, Commodore Adedotun Ayo-Vaughan, in a statement, further asserted that there exists a lot of connivance with retired oil workers from the Niger Delta likewise several compromise by some of the employees who work in the international oil companies.

The most recent effort made by the federal government to tackle the challenge is the launch of a mobile application to monitor oil theft. However, analysts argue against the sincerity of the government. This is because thieves and pipeline vandals have sourced a way of bypassing introduced measures, one of which includes the insertions added to pipelines for the diversion of supplies. Although crude oil has been essential in the growth of Nigeria’s infrastructure, with its account of 41% of the total government revenue in 2021, translating to 4.34 trillion Naira ($10.1 billion) in earnings, the challenges confronting it limit its impact in the economy.

Unsolved problems in the oil sector would discourage investment.

A Lagos-based oil and gas expert, Olufola Wusu, stated that the economic impact tactic adopted by oil thieves in the Niger Delta region has worsened compared to the past, however if not properly addressed, there would be further discouragement of investment. Other challenges confronting the oil industry include inadequate pipeline infrastructure, fire outbreaks, pollution, poor gas funding, unreliable gas supplies, fuel pricing, oil spillage, inadequate security, and many others. These problems affect the oil and gas industry of Nigeria, posing a threat to the country’s revenue.


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Ask Nigeria
7 days ago

Group says politics needs more professionals – Nigeria loses 470,000 barrels of oil to theft and vandalism, daily. – Express your point of view.

Tolaniiii
Member
6 days ago

It is challenging for the nation to reach the 1.8 million barrels per day (bpd) production target set by the Organization of Petroleum Exporting Countries due to oil thefts and damage.

Christiana
Member
6 days ago

it’s sad to know that we lost our position as Africa’s largest crude oil producer to Angola as a result of theft. This should give the government more reason to work on security issue

Bola12
Member
6 days ago

The nation, which is home to the most populous and prosperous economy in all of Africa, is seeing a level of financial and monetary disruption that has never been seen before.

Kazeem1
Member
6 days ago

There is a significant amount of collusion among oil workers who have retired in the Niger Delta, as well as multiple instances of individuals working for multinational oil firms who have compromised their positions.

Godsewill Ifeanyi
Member
6 days ago

The Nigerian oil industry has been hampered for several years due to theft and destruction of pipelines, which has occurred without regard for the government and has rendered every security measure ineffective.

Adesanyaj72
Member
6 days ago

In addition to acts of vandalism and theft, Nigeria’s oil production capacity has been hampered by factors such as significant underinvestment in the oil sector and leaks caused by pipelines that have been destroyed.

Chibuzor
Member
6 days ago

It is good that the Nigerian Navy has stated that it will continue its activities around the clock at all of its locations in the Niger Delta in an effort to put an end to the operating of illicit refinery facilities.

Taiwoo
Member
6 days ago

More security personnel should be stationed at high-risk areas for vandalism so that the country’s crude oil can be protected from the threat that it is currently facing.

Nwachukwu Kingsley
Member
6 days ago

The dishonest actions of certain of the country’s people led to the theft of crude oil, which is the country’s primary source of money and the cause of the revenue problem that has recently befallen the country.

Hassan Isa
Member
6 days ago

It is really unfortunate that Nigeria has lost its position as Africa’s greatest crude oil producer to Angola as a result of the theft of barrels of crude oil and the damage of pipelines, but this has happened.

Tonerol10
Member
6 days ago

we loosing our position as the number one oil producing Nation now occupying the third due to vandalism. Okey no wahala. What is our government doing about it. What is their plans to stop all this vandalism. All this vandalism can be fixed if only government can do the needful

SarahDiv
Member
6 days ago

Nigeria is now Africa 3rd highest producer fallen from their formal position has the highest producer of oil in Africa which was as a result of 470,000 barrels of oil lost to theft and vandalism, daily. Competent hands needs to be employed to resolve the current situations in the country.

DimOla
Member
6 days ago

This current administration are the major problem of themselves.Nigeria losing 470,000 barrels of oil to theft and vandalism, daily calls for a great concern. Competency should now be focused on. Nepotism and sectionalism should be kept aside. The Federal Government has fill every juicy position in government with the core Fulani northerns sacrificing competence. Why won’t we find ourselves in these current situation. It is well.

Ultra0711
Member
6 days ago

This explains why there have been scarcity and hike on price of petroleum. Necessary authorities needs to take charge and strengthen security towards curbing such illegal activity.

Remi1
Member
6 days ago

The Nigerian oil industry has been devastated for a number of years due to theft and pipeline damage, which has disregarded the government and rendered all security measures ineffectual. It is challenging for the nation to meet the demand for 1.8 million barrels per day due to oil thefts and damage (bpd).

theApr
Member
6 days ago

The crisis that has befallen the country’s revenue is an effect of activities of dishonest citizens through the theft of the main contributor to Nigeria’s revenue base crude oil. For several years, theft and pipeline vandalism has crippled the Nigerian oil sector, without reverence to the government and rendering every security measure useless. The challenge with oil thefts and vandalism makes it difficult for the country to meet up with the 1.8 million barrels per day (bpd) which has made Angola and Libya top two oil producers.

Iyanu12345ogg
Member
6 days ago

The FG effort to tackle the oil bunkering challenged should be questioned… “FG launched a mobile application to monitor oil yet thieves found a way of bypassing it”. The story no clear… Putting aside other challenges confronting the oil industry…. How are they securing the pass?i want to know. The sincerity of the govt itself should be checked! FG should stop deceiving us!

Last edited 6 days ago by Iyanu12345ogg
Haykaylyon26
Member
6 days ago

Oil theft as been our long time obstacle we need to solve this oil theft and regain our position as number one highest oil producer in Africa. This oil theft affect distribution of our oil solution need to be come up with to solve it

jdpumping
Member
6 days ago

Imagine we loosing our position as the number one oil producing Nation now occupying the third due to vandalism and oil theft by the rich and powerful in the society.

Adeolastan
Member
6 days ago

Crude oil theft has been in existence for so long ago and the government know are doing this but because they are part of the government nothing is been done and ordinary citizens are suffering for it.

Abusi
Member
6 days ago

Even with the numerous number of barrels of oil we lose per day via bunkering, we are still the 3rd oil producing country in the whole of Africa. Imagine how much we have lost as a result of bunkering, we would have gain a considerable sum of money to inject more in other sectors.