Nigeria exports over 2.5 million barrels of crude oil on a daily basis. There are specific states in Nigeria that contribute majorly to this feat. There are major oil-producing states in Nigeria that enable the country to grow its economy.
There are specific states in Nigeria that contribute majorly to this feat. The country Nigeria largely depends on crude oil as a major source of the economy with which the economy thrives.
However it is not all the states in Nigeria that oil is gotten from, there are just about 9 states in the country that produces oil and these states are categorized as Niger State produces Delta region.
To be precise Lakedo, Bayelsa, Rivers, Cross Rivers, Delta, Akwa State produces Ibom, Ondo, Abia, Imo, and Anambra States are Nigerian oil production states. However, the production capacity of each state differs from each other.
The country with over 200 Million population is massively rich in oil resources and name among the largest oil State produces producing states in West Africa and the 13th largest oil State produces producing country in the World.
The country’s land area that generates her massive oil resources is just around 7.5 percent of the country’s total landmass across 9 states of the federation.
Of these eight oil State produces producing states 80 percent of the crude oil is gotten from Bayelsa, Akwa Ibom, Delta, and Rivers State.
The South State produces the South zone of Nigeria as often referred to as comprises more than 40 ethnic groups, comprising Ijaws, Itsekiris, Urhobos, Isokos, Kalabari, Efik, Ibibio, Esan, Igbo, Oron, Annang, Yoruba, Ogoja, and Ukwuani.
Brief History of Oil Discovery in Nigeria
The energy sector is a crucial component in the Nigerian economy, as Nigeria has plenty of natural resources including fuel, electricity, coal, and water.
Oil was discovered in Nigeria in 1956, following a half-century of colonization at Oloibiri in the Niger Delta. Oil exploration began fully in 1958 and has since dominated the country’s economy since the 1970s.
The finding of crude was first made by Shell-BP, which is the lone distributor then. In 1958, as the first oil field was on line delivering 5,100 barrels per day, Nigeria entered the league of oil producers in the world.
Since 1960, mining privileges were given to many international firms in the onshore and offshore regions around the Niger Delta. In 1965, Shell discovered the EA field in the shallow waters southeastern Warri.
By the end of the 1960s and early 70s, Nigeria had produced more than 2 million barrels of crude oil a day.
In sub-Saharan Africa, Nigeria is now the main oil producer and since 1971 it has become one of OPEC members, with an average output of 2.413 million barrels per day in 2005.
The end of the Biafran war coincided with the increase of the world oil price in 1970, and Nigeria continued to gain instant prosperity from its oil output. This makes it the sixth biggest producer in the world then.
Nigeria, after China and India, is the third country with the poorest nation men in the world, having a per capita income of roughly US$ 350, and about 70 million Nigerians survive on less than 1 USD daily.
Although in the 80s demand fell due to the economic crisis, in 2004 oil production rejuvenated overall to a record high of 2.5 million barrels per day. Present growth plans plan to boost production by 2010 to around 5 million barrels per day.
Oil output and export play a leading role in Nigeria’s economy, accounting for nearly 90% of its gross profits. This powerful position propelled agriculture, the conventional backbone of the nation, back in the early 1950s and 1960s.
High rates of economic growth, civil tensions, and environmental deterioration are only a couple of the issues characterizing Nigeria’s current condition.
Niger Delta which is the largest oil producer in Nigeria is the powerhouse of Nigeria’s development but still poses a mystery because its massive oil income hardly influenced the immense local poverty itself.
This may be concluded that an abundant energy supply would be a direct blessing for a developing country like Nigeria. The selling of this commodity tends to give enticing chances to raise national revenue and improve living standards of the nationals. Fuel is a fast source of capital growth, an globally exchanged asset that absorbs foreign exchange.
Large revenues are produced by the wide difference between production unit costs and economic rentals, royalty, oil taxes, oil exports, etc.
Complete list of the Oil Producing States and Volumes Produced
barrels per day
|Akwa Ibom State||31.4||346,000 BPD|
|Delta State||21.56||344,000 BPD|
|Rivers State||21.43||290,000 BPD|
|Bayelsa State||18.07||290,000 BPD|
|Ondo State||3.74||60,000 BPD|
|Lagos State||2.64||40,000 BPD|
|Edo State||2.64||33,000 BPD|
|Imo State||1.06||17,000 BPD|
|Abia State||068||11,000 BPD|
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