Are you interested in knowing oil price in Nigeria? This is for you. In this write up, you will find out everything you need to know about the price of crude-oil in the country right now.
Nigeria is unarguably one of the most blessed nations on earth. This is a fact. Heaven smiled at her with enough bounties for every one of its citizens.
The country is the largest oil producer in Africa and the 6th producer in the world.
This great country has so many natural resources embedded in her member- states, thus, making her lack little or nothing.
Long ago, agriculture was the major source of her livelihood before the discovery of oil.
She produced agricultural products like sesame, palm oil, rubber, rice, cashew, groundnut, palm kernel, millet, melon, maize, soya bean, cassava, coffee, sorghum, cocoa, ginger, hides and skin, poultry and exports them to other countries of the world.
Nigeria believes in farming which is why she adopted the slogan “Great Nation Great Farmer, No Farmer No Nation.”
Meaning that a Nation’s greatness lies in the hands of farmers. Nigeria produced both subsistence and commercial farmers that joined hands together to combat poverty.
Oil Price in Nigeria 2020
Currently, the price of crude oil in Nigeria stands at $42 per barrel.
Though this amount may sound big to those hearing about it for the first time, it is nothing compared to how it has always been.
With this money, the government carries out its major infrastructures in the country.
When And where Was Oil Discovered In Nigeria?
Oil was discovered in Nigeria in the early 50’s. The company, SHELL- BP which came into Nigeria as of that time is said to have made the discovery in Oloibiri, Niger Delta on Sunday, 15th January, 1956.
In 1958, Nigeria joined the ranks of oil producers with her oil production of 5,100 bpd.
Following this, the country joined OPEC in 1971.
Other member countries of OPEC are Congo 2018, Equatorial Guinea 2017, Angola 2007, Gabon 1975, Ecuador 1973, Algeria 1969, The United Arab Emirates 1967, Libya 1962, Indonesia 1962, and Qatar 1961.
The discovery of oil brought about infrastructural development and economic growth. Though, people in power embezzled the money and abandoned the project.
As a result of this, the host community are suffering from hunger because they cannot fish in their rivers, cultivate their land.
I urge the federal government to look into other sectors available in this country like agric sector, the manufacturing industries, to see how the will promote the wellbeing of their citizens.
Refineries in Nigeria
Currently, Nigeria has five refineries. They are listed below.
- Warri Refineries (WRPC)
- Kaduna Refineries (KRPC)
- Port Harcourt Refineries (PHRC)
- Petroleum Refineries And Petrochemicals
- Niger Delta Petroleum Resources.
The Dangote refinery is still under construction and there’s also the Indoroma Eleme Petrochemicals Company Limited.
The first four is owned by the Nigerian government through the Nigerian National Petroleum Corporation (NNPC) while the last one is owned by Niger Delta Petroleum Resources (NDPR).
The first refinery that ever existed in Nigeria is the Port Harcourt refineries. It produced about 38,000 barrels per day. It began operation in late 1965.
Oil Wells in Nigeria And Their Owners
Nigeria has 1481 oil Wells and 159 oil fields.
The Niger Delta Basin out of the 159 fields, controls 78 of them which made them the most productive region of the state.
Having known the locations of oil refineries, it is good to note that there are other states in Nigeria that produces oil.
They are Abia State, Akwai Ibom State, Delta State, Rivers State, Edo State, Ondo State and Bayelsa State. Lagos was declared an oil state since 2016, but earns low based on derivation policy.
90% of the oil production is gotten from Akwaibom, Rivers, Bayelsa and Delta States respectively.
In 1963, oil was discovered in Akata, Eket, but in smaller quantities.
This is to tell you that most of the oil blocs and oil production is located in the Niger Delta region regardless of the fact that it constitutes only 7% of Nigeria landmass
Again, oil was discovered in Adam and Bomu in Ogoni territory.
In 1957 and 1960, 847,000 tonnes of crude oil was exported. In 1950, non-British firms obtained license to explore oil, companies like Chevron in 1961, Tenneco in 1960, Elf in 1962, Agip in 1962, Mobil in 1955, Gulf oil in 1961.
There are individuals, firms that own oil Wells in Nigeria.
When I say oil well i mean people that take it upon themselves to dig the mother Earth in search of oil or hydrocarbons like natural gas. The license is given to interested individuals by the government and they too give their returns.
Though there are a hundredth of them, I will list but a few because some oil wells might be owned by families or by group of friends. Don’t expect it to be complete. They are listed below.
Artur Eze, Saleh Jambo, Udoji, Ibrahim Bunu, Alfred James, Sani Bello, Emeka Offor, Mike Adenuga, Andy Uba, Olukun, Ibukun Olawepo, David Richards, Rilwan Lukeman, Colonel Sani Bello, Alhaji Aminu Cantata, prince Nasiru Ado Bayero, Yaradua, Peter Odili, Atiku Abubakar, Alhaji Folawiyo W I and lots of them.
Though, we are richly blessed with oil, Nigeria is suffering from oil mismanagement and it is really affecting the economy. With so much oil in their possession, one might think that Nigeria and her citizens are better off.
Amount Nigeria Has Generated from Oil
1956-1966, Nigeria got 140 million naira from crude oil.
The general Yakubu Gowon administration earned N11.3 billion in 1967-1975, late general Murtala Muhammad and Olusegun Obasanjo military regime got N25 billion from 1975-1979.
The Civilian president, Shehu Shagari earned N36 billion, Buhari as the military head of state in 1984-1985, earned about N25 billion.
General Ibrahim Babangida Badamasi earned N420 billion in 1985-1993, Ernest Shonekan and Abacha regime in 1993-1998 earned N1.6 trillion, 1998-1999 of Abdulsalami Abubakar regime earned N350 billion.
Between May 1999 to May 2007, under Olusegun Obasanjo, Nigeria earned N27 trillion. He was seceded by late president Umaru Musa Yar’Adua, in his three years administration, earned N9 trillion.
The Balyelsa president, Good luck Jonathan came into power in 2010-2015, he made Nigerians smile by earning N 51 trillion naira.
Since Buhari became the president of Nigeria, he managed to earn N 6 trillion naira.
This is essentially why petroleum engineers are one of the highest paid in the country right now.
It is disheartening to note that the citizens of this great country are still lacking the basic infrastructure and the host states whose land, air and water are polluted are left out in development.
Crude Oil Price in 2020
Following what is going on around the world right now, the Nigerian economy has experienced a slight fall.
In 2019, the price per barrel was 57 US dollars but in 2020, it dropped by 15 dollars.
As it is, crude oil and petroleum products are the main export products for Nigeria.
Having said that, Nigeria is the leader in Africa because she produces 2.5 million barrels per day and the sixth oil producer in the whole world.
The oil industry has played a major role in generating revenue for Nigeria government. It provides over 65% of funds for the country.
Since oil is the major source of income (before it was agriculture), Petroleum industries contribute 95% of her foreign exchange.
The US Energy Information Administration claims that the oil reserves of Nigeria is between 17and 22 million barrels while others maintains that it is over 30 million barrels.
Oil price in Nigeria just like the dollar exchange rate, changes from time to time.
That is one of the major reasons the government needs to move the dependence from oil to other sectors of the economy.
That way, our country can truly harness its potentials and grow to become like other nations we greatly admire today.