Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Nigeria loses $7b to oil bunkering yearly- IEA

13 November 2012, 16:27

Lagos - Flooding and large-scale theft of crude drove Nigerian oil output to the lowest level for more than two years in October, the IEA said on Tuesday, highlighting challenges facing Africa’s biggest producer.

Oil production in Nigeria fell to 1.95 million barrels per day in October, the International Energy Agency said in its monthly report, with production in recent months having ranged between 2.0 and 2.5 mbd.

The drop from September to October was around 110,000 barrels per day, it said, leaving Nigerian production at “the lowest level in around two and half years.”

It said: “By early November, production levels were recovering, with export schedules showing increased volumes for December.”

It was enough to keep Nigeria as Africa’s top producer ahead of Angola at 1.79 million barrels per day, but the drop comes amid growing warnings that the country must take action to avoid stagnant output in the future.

The IEA report cited heavy flooding which hit Nigerian production this rainy season as well as the continuing problem of large-scale and organised oil theft in the continent’s most populous nation.

It cited findings that “oil bunkering, or theft, costs the government an estimated $7 billion in lost revenue per year.” By comparison, Nigeria’s annual total budget is around $31 billion.

Theft and sabotage often leads to pipeline damage, causing oil firms to cut output. Shell has been Nigeria’s biggest producer, with major firms such as Exxon, Chevron and Total also present.

Nigerian oil production sharply rebounded after a 2009 amnesty deal for militants in the Niger Delta region following years of unrest which had cut output by around half for a period of time.

However, future output is in question over a number of factors, including a long-stalled overhaul of Nigeria’s oil industry that has created uncertainty among energy firms, freezing investment, as well as theft.

Beyond that, a boost in production in the United States — the IEA believes the US will become the world’s top oil producer by 2020 — is also expected to force Nigeria to hunt for new markets. The United States has been a major buyer of Nigerian oil exports.

Nigeria’s government has been seeking for years to pass sweeping legislation to overhaul its oil industry, widely seen as riddled with corruption. President Goodluck Jonathan sent a fresh version of the bill to parliament in July, but lawmakers are yet to take action.

Uncertainty over new fiscal terms in the industry has led to a slowdown in new investments, which could threaten future production growth if not resolved.


Tags iea oil theft

Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...