Apart from the oil producing states in Nigeria, the country is also blessed with an abundance of resources. The country is best recognized for its massive hydrocarbon reserves. Nigeria, on the other hand, has much more than oil and gas. It has considerable coal, iron ore, lead, limestone, tin, and zinc resources.
The Yankari and Kainji national parks, for example, is the major game reserves in the country, oil producing states in Nigeria oil was discovered for the first time in 1956 at Oloibiri, Nigeria’s Bayelsa State.
Although Libya has greater reserves, Nigeria had 37.2 billion barrels of proven oil reserves as of 2011, making it Africa’s and the world’s 11th largest oil producer, with an average of 2.28 million barrels per day in 2006.
One of Nigeria’s most valuable natural resources is crude oil. Apart from the fact that crude oil is abundant in Nigeria, crude oil accounts for around 65 percent of the country’s total revenue.
Nigeria is Africa’s largest producer of oil and gas, but the south-south region, sometimes known as the Niger Delta, is Nigeria’s highest producer of oil and gas. This article will list all the top oil producing states in Nigeria.
Who Controls the Oil in Nigeria?
Let’s say Shell Nigeria owns concessions on four companies, they are Shell Petroleum Development Company (SPDC), Shell Nigeria Exploration and Production Company (SNEPCO), Shell Nigeria Gas (SNG), Shell Nigeria Oil Products (SNOP), as well as holding a major stake in Nigeria Liquified Natural Gas (NLNG).
Problem with Oil in Nigeria
Farming and fishing have become impossible or extremely difficult in oil-affected areas due to the several forms of oil-generated environmental contamination visible throughout the region, and even drinking water has become scarce. Malnutrition and illness appear to be widespread in oil producing states in Nigeria.
Disadvantages of Oil/Crude
- Unequal distribution of revenue
- The infrastructure of the oil sector requires continuous maintenance
- Limited in supply and unsustainability
- Sole attention on Crude oil as the primary source of revenue
- Environmental pollution
- Social unrest
Advantages of Oil/Crude
Crude oil is a major source of foreign exchange and has a significant impact on the Nigerian economy. Oil production generates approximately a billion dollars in investments in the country’s economy, as well as the development of linked industries and infrastructure. Furthermore, it creates new jobs for Nigerians and raises social and living conditions in general.
Top 5 Oil Producing States in Nigeria
Akwa Ibom State
Akwa Ibom State is the highest oil producing state in Nigeria. Nigerian crude oil production accounts for around 31.4 percent of the country’s daily oil output. On a daily basis, Akwa Ibom produces 504,000 barrels of crude oil.
Delta State
Delta State is one of Nigeria’s top crude oil producing states. Delta State produces 346,000 barrels of crude oil per day on average, accounting for 21.56 percent of Nigeria’s crude oil production.
Rivers State
Rivers State, one of Nigeria’s oil producing states, is located in the country’s south-central area. Rivers State produces 290,000 barrels of crude oil per day on average. Rivers State accounts for approximately 21.43 percent of Nigeria’s crude oil production.
Bayelsa State
Bayelsa despite being one of the smallest states in Nigeria is one of the countries that produce the most crude oil in Nigeria. Crude oil production in Bayelsa makes up about 18.07% of oil production in Nigeria. Bayelsa State produce an average of 290,000 barrels of crude oil daily
Ondo State
Surprisingly, Ondo is among the oil producing states in Nigeria crude oil production in Ondo state surpasses that of some states in the Niger Delta region. Ondo is one of the top oils producing states in Nigeria with up to 60,000 barrels of oil per day. Oil production in Ondo state makes up 3.74% of oil production in Nigeria.