Nigeria is grappling with the daunting task of finding buyers for its crude oil, with approximately 30 out of 53 loaded cargoes currently stranded.
This predicament arises despite the country experiencing low production levels, with Angola surpassing Nigeria as the leading crude oil producer. Bloomberg data indicates that the unsold cargoes could exceed 30 million barrels.
While Nigeria boasts one of the world’s best grades of crude oil, challenges such as refinery maintenance and stiff competition are reportedly hindering its market prospects.
In stark contrast, Angola is making strides in the crude oil market, with a significant portion of its cargo bound for India.
India, once Nigeria’s largest crude oil buyer, saw a notable shift in trade patterns, with the National Bureau of Statistics reporting that the Netherlands emerged as the leading importer of Nigerian crude oil, worth N2.5 trillion in the first nine months of 2023, while India’s imports from Africa’s top producer were valued at N1.6 trillion.
Meanwhile, Nigeria’s Minister of Petroleum Resources, Heineken Lokpobiri, remains optimistic about elevating the country’s dismal oil production to meet the 2024 budget benchmark of 1.78 million barrels per day.
Addressing the decline in oil production in March, Lokpobiri attributed the situation to challenges on the Trans Niger Pipeline and maintenance activities by Shell.
However, he reassured stakeholders that these issues had been promptly addressed, and production was poised to rebound in the near future.
Lokpobiri further emphasized his commitment to policy evolution aimed at maximizing the utilization of Nigeria’s oil wells, thereby boosting revenue and stabilizing foreign exchange reserves.
This increased revenue, he noted, would enable the government to fulfill its infrastructure development commitments outlined in the budget.
The statement released by Lokpobiri’s special assistant, Nneamaka Okafor, underscores the government’s determination to navigate challenges in the oil sector and drive sustainable economic growth through strategic policy interventions.
