Nigeria’s crude oil production saw its second consecutive monthly decline since the start of the year, dropping to 1.231 million barrels per day (mbpd) in March, according to the Organization of the Petroleum Exporting Countries (OPEC). This is a decrease from the 1.322 mbpd produced in February and represents a drop of 91,000 barrels per day.
OPEC’s latest Monthly Oil Market Report for April 2024 highlighted the decline, noting that Nigeria’s production has been falling since January when it was at 1.427 mbpd. The average crude oil production for the first quarter of 2024 stood at 1.327 mbpd, slightly higher than the fourth quarter of 2023’s 1.313 mbpd and the third quarter’s 1.201 mbpd.
The decline in Nigeria’s oil production is attributed to oil theft and pipeline vandalism, which have significantly impacted the country’s output. The Nigerian National Petroleum Company Limited (NNPCL) reported 155 incidents of oil theft in one week, including 53 illegal pipeline connections and 36 illegal refineries discovered in the Niger Delta.
NNPCL also detailed instances of vandalism, stolen crude, and illegal storage sites across several states, including Bayelsa, Rivers, Delta, and Akwa Ibom. In addition, 38 suspects were arrested in the review period.
Crude oil theft has cost Nigeria trillions of naira, prompting some international oil companies to shift from onshore to deep offshore oil fields or leave the country altogether. The Federal Government reported in November 2023 that more than N4.3 trillion worth of crude oil was stolen in over 7,000 cases of pipeline vandalism in a five-year period.
The Nigeria Extractive Industries Transparency Initiative (NEITI) called oil theft a national emergency, posing significant threats to economic growth, oil exploration, and the profitability of oil companies. NEITI’s data revealed that in the last five years, Nigeria incurred 7,143 cases of pipeline breakages and deliberate vandalism resulting in crude theft and losses of 208.639 million barrels valued at $12.74 million (N4.325 trillion). Additionally, Nigeria spent N471.493 billion on repairing or maintaining pipelines during the same period.
