…NNPCL’s Strategic Partnerships, Improved Regulatory Framework Raised Oil Export By 511%
Nigeria’s energy sector has witnessed a significant revenue surge, with the federal government earning an impressive N129.2tn from crude oil exports between 2020 and 2024.
This remarkable growth represents a 511 per cent increase in oil export revenue over the five years, underscoring the nation’s continued dependence on its petroleum resources.
The breakdown of yearly earnings reveals a consistent upward trajectory with N9.44tn generated in 2020, while 2021, 2022, and 2023 saw total oil revenue inflows of N14.41tn, N21.09tn and N29tn respectively.
The most dramatic increase occurred in 2024, when crude oil export earnings surged to N55.28tn, nearly six times the amount recorded in 2020.
Experts have attributed this sharp increase to higher global oil prices, increased production and export volumes, improved regulatory frameworks, and foreign exchange gains.
THE WHISTLER understands that the recovery of the international oil market after the COVID-19 pandemic, along with geopolitical tensions affecting supply chains, played a major role in elevating crude prices.
Findings also showed that reforms such as the Petroleum Industry Act (PIA) and policy interventions from the regulatory agencies aimed at increasing transparency and efficiency in the oil sector have also contributed to a more stable investment climate.
The PIA, which gave birth to the Nigerian National Petroleum Company Ltd., the Nigerian Upstream Petroleum Regulatory Commission, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, has opened the oil and gas sector for strategic partnerships.
The NNPC, under the leadership of the Group Chief Executive Officer, Mele Kyari, has been intensifying its efforts to increase crude oil production through strategic partnerships with both local and international investors.
Amid fluctuating global oil prices and growing concerns over Nigeria’s production capacity, the national oil company has been leveraging collaborations to enhance exploration, curb production losses, and maximise revenue generation.
In recent months, the NNPC has signed multiple agreements with global energy firms and indigenous oil producers, aimed at increasing output from key oilfields and addressing challenges such as oil theft, pipeline vandalism, and operational inefficiencies.
The partnerships focused on deploying cutting-edge technology, optimising existing assets, and unlocking new reserves to meet both domestic and international demand.
One of the major initiatives under this strategy includes joint ventures and production-sharing agreements with leading oil giants. These collaborations have assisted in revamping ageing infrastructure, accelerating deepwater exploration, and improving overall efficiency in crude oil extraction.
Additionally, the efforts of the Nigerian National Petroleum Company Ltd to reduce disruptions from pipeline vandalism and oil theft have helped improve export performance.
The surge in oil revenue is expected to have far-reaching economic implications, offering the government an opportunity to finance infrastructure projects, reduce fiscal deficits, and support economic diversification efforts.
The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, had said the call for energy transition will not dissuade the federal government from using its hydrocarbon resources to achieve energy security for its over 200 million population.
The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, had, during an address to the Oil Producers Trade Section (a group by the five oil giants operating in Nigeria) at the Cross Industry Group (CIG) meeting in Istanbul, Turkey, underscored the sector’s central role in Nigeria’s economy, providing around 85 per cent of government revenue and serving as a vital source of foreign exchange.
As the global landscape shifts towards cleaner energy, he emphasised the necessity for Nigeria’s oil and gas sector to remain resilient, competitive, and profitable.
The minister outlined Nigeria’s dual approach to ensuring the future of its petroleum industry by focusing on maximising crude oil production and adapting to a cleaner energy transition.
“In the short term, our focus remains on increasing revenue from crude oil production,” Lokpobiri stated, affirming the government’s commitment to addressing operational bottlenecks and upgrading infrastructure.
Recognising the urgency of cost reduction, he highlighted government measures aimed at streamlining operations, particularly upstream activities, to remain competitive in a fluctuating global market.
A significant part of the government’s vision involves balancing energy demands with environmental considerations.
Lokpobiri noted, “The world is moving toward cleaner energy, and Nigeria must be part of that transition.
“The government has prioritised natural gas as a cleaner alternative while actively exploring renewable energy options to diversify Nigeria’s energy mix.”
Acknowledging the persistent security challenges in the Niger Delta, the minister commended the NNPC Ltd and regulatory agencies’ ongoing efforts to protect Nigeria’s oil infrastructure through enhanced security measures.
“We are engaging communities and encouraging partnerships that foster local ownership of critical assets,” he said.
Efforts to boost production include increased military support, particularly from the Nigerian Navy and Joint Task Force (JTF), combined with community engagement and economic empowerment initiatives to combat pipeline vandalism and oil theft.
The government has also implemented technology-driven solutions, including drone and satellite surveillance, to enhance the security framework and detect potential threats to the industry.
The minister noted the comprehensive package of reforms and incentives to revitalise Nigeria’s oil and gas sector, aiming to attract greater investment and stimulate economic growth.
“Key elements include the VAT Modification Order 2024 and the Tax Incentives Order for deep offshore oil and gas production, offering fiscal benefits to companies involved in the sector. In addition, directives focus on reducing contracting costs and timelines, mandating that the procurement cycle be streamlined to six months, enhancing efficiency for investors, “he said.
Nigeria Earned ₦129.2tn From Crude Oil Exports In Five Years is first published on The Whistler Newspaper
Source: The Whistler
