Nigeria’s Petroleum Industry: The Basics of How the Oil Industry Works
The Nigerian petroleum industry is a thriving sector of the economy. It has been the backbone of Nigeria’s economy for decades and as such, its role as an economic driver cannot be underestimated. The Nigerian petroleum industry employs over 450,000 people and accounts for over 90% of Nigeria’s export income.

The Nigeria petroleum industry is heavily reliant on crude oil, which accounts for approximately 98% of the total production value in 2011. The country exports this commodity to many different countries across the globe.

Nigeria’s Petroleum Industry
Nigeria is the fifth largest producer of oil in the world. In 2012, they exported about 2.2 million barrels of oil per day, accounting for 2% of the total global production. Nigeria also has a major import market, importing approximately 3.1 million barrels of oil per day.

Nigeria’s petroleum industry is regulated by the Nigerian National Petroleum Corporation (NNPC) which is a state-owned corporation. The NNPC was established in 1977 with the aim of managing and regulating the oil industry in Nigeria. This organization also serves as a major revenue source for Nigeria’s government, contributing 40% of its total revenues from exports.

In 2014, Nigeria surpassed its production target of 2.5 million barrels per day by almost 400,000 barrels per day. The country’s production capacity is anticipated to surpass 3.1 million barrels per day by 2019.

Many international organizations have funded and developed projects in Nigeria’s petroleum industry with the hope of boosting production and revenue generated from this industry. In 2004, ExxonMobil and Saudi Aramco invested in a project to increase Nigeria’s capacity to refine crude oil in two plants with a total investment of $6 billion.<