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Petroleo Brasileiro Nigeria ltd (Petrobra Nigeria) Address: 4th & 5th Floor, Sapetro Towers, Plot 98, … This page was last edited on 7 February 2021, at 16:22. The oil sector is one of the most crucial in Nigeria. [47] The corruption is found at the highest levels as well. Nigerian oil is of high quality. At the beginning of World War I the corporations operations were halted. The Delta's environment can be broken down into four ecological zones: coastal barrier islands, mangrove swamp forests, freshwater swamps, and lowland rainforests. Calabar also served as the first capital of Nigeria and the point of entry of Western religion and Western education into southeastern Nigeria. In 1972 it declared that all property not currently owned by a foreign entity was legally the property of the government, which gained jurisdiction over the sale and allocation of concessions to foreign investors. Most of Nigeria's oil fields are small and scattered, and as of 1990, these small unproductive fields accounted for 62.1% of all Nigerian production. The Nigerian economy is heavily dependent on the oil sector, which, accounts for over 95 percent of export earnings and about 40 percent of government revenues, according to the International Monetary Fund. Immediately upon taking power, Abacha commenced the brutal repression of these subversive elements which would make his tenure notorious on a global basis. Additionally, Nigerian government officials have remained majority shareholders in the profits created by the production of Nigerian oil, leading to government capturing of nearly all oil production, and citizens are not seeing socioeconomic benefits, and insist that oil companies should compensate people.[3]. [25] The Buhari government neglected to punish even Shagari himself, a consistent trend in Nigerian's long line of dictariorial rulers, who almost universally been spared any kind of justice.[25]. Retrieved 9 May 2007 from, Egan, J. Ken wrote and spoke out about the rampant corruption in the Nigerian government and he condemned Shell and British Petroleum. However, competition for the profits from oil created a great level of terror and conflict for those living in the region. [36] Nigeria produces a form of oil ideal for the United States, has huge reserves, and has increased its production to 2.8 million barrels (450,000 m3) of oil a day. This event coincided with the declaration of Nigeria's Second Republic. He and the others were hung in 1995 and he was buried in an unmarked common grave. The Nigerian people took to the streets in large numbers to protest the election's annulment. See also: List of countries by Oil Consumption, See also: List of countries by Oil Production, © Copyright Worldometers.info - All rights reserved -, U.S. Energy Information Administration (EIA), Nigeria produces every year an amount equivalent to. However, as Nigerian activist and Nobel Laureate Wole Soyinka asserts, "the import license scam that was used by the party as a reward and enticement for party loyalists and would-be supporters cost the nation billions of dollars...while food production in the country virtually ceased". [12] The Dangote Refinery, expected to open in the early 2020s, will have a 650,000 barrels (103,000 m3) daily capacity.[18]. This situation contrasts to Nigeria in 1960 just after independence, when despite British underdevelopment, the nation was more or less self-sufficient in terms of food supply, while crops made up 97% of all revenue from exports. Geographically isolated in the north, the Caliphate was governed by Islamic laws as prescribed by dan Fodio's Kitab al-Farq and maintained greater links commercially and culturally to North Africa and the Arab states than to West Africa and the Atlantic. There are oil refineries at Port Harcourt, Warri, and Kaduna. For example, a former inspector general of the national police was accused of stealing 52 million dollars. In 2008, the government prepared a Gas Master Plan that was intended to promote natural gas production and encourage the supply of natural gas to domestic power stations so as to help alleviate the country's electricity shortages. (2006). At the federal level, political elites have utilised patronage to consolidate power for the ruling government, not only by rewarding their political friends in the federal government, but also by paying off major interest groups at the state or tribal level in order to elicit their cooperation. Originally this was done primarily through the government-owned Royal Niger Company. [citation needed], After the loss of over 2,000,000 lives, the war concluded in 1970 and resulted in a victory for the Nigerian state, as the secessionist regions were subsequently brought back into the Nigerian fold. According to the CIA World Factbook, Nigeria's main export partners are the United States, India, Brazil, Spain, France, and the Netherlands. Oil and gas company in Nigeria is a major industry that is supporting the global economy. The Ijaw (sometimes spelled Ijo), the fourth most populous tribe in Nigeria and by far the largest in the Delta region, lived during late medieval times in small fishing villages within the inlets of the delta; however by the 16th century, as the slave trade grew in importance, Ijaw port cities like Bonny and Brass developed into major trading states which served as major exporters of fish and other goods regionally. Ruptured Pipeline Spews Crude Oil, Nigeria. He was sentenced to six years in prison for a lesser charge. Shell Oil Spill … River Ethiope Polluted by massive oil spill, Nigeria. Buhari charged out of the gate in December 1983, declaring himself Head of the Supreme Military Council of Nigeria, he condemned the civilian government's blatant corruption and instituted programs supposedly designed to eliminate the disease of corruption. The Niger Delta region, which is roughly synonymous with the Niger Delta province in location and the contemporary heart of the petroleum industry, is and was a zone of dense cultural diversity and is currently inhabited by roughly forty ethnic groups speaking an estimated 250 dialects. [19] From the beginning, divide and rule tactics were employed by both traders and administrators, highlighting ethno-religious differences and playing groups against one another. [49], The people of the delta states live in extreme poverty even in the face of great material wealth found in the waters by their homes. In fact, in western Europe 99% of associated gas is used or re-injected into the ground. The exclusion of easterners from power caused many in the east to fear that oil revenues would be used to benefit areas in the north and west rather than their own. This, combined with major cuts to important public services, incited public unrest so extreme that Babangida's Armed Forces Ruling Council was obliged to partially reverse the SAP initiatives and return to inflationary economic policies. In 1990 he founded the Movement for the Survival of the Ogoni People (MOSOP). This decision is coming after thirteen long years of legal battle instituted by the plaintiffs (Four Nigerian Farmers and Milieudefensie – Friends of the Earth Netherlands) against the Royal Dutch Shell. It also provides 95% of foreign exchange earnings, and about 65% of government budgetary revenues. Gas flares release a variety of potentially poisonous chemicals such as nitrogen dioxides; sulfur dioxide; volatile organic compounds like benzene, toluene, xylene, and hydrogen sulfide; as well as carcinogens like benzapyrene and dioxins. [19] The decline in agricultural production was not limited to cash crops amid the oil boom, and national output of staple foodstuffs also fell. Crude oil is definitely one of the top 20 mineral resources in Nigeria and the history of oil exploration in Nigeria goes back to 1903 when Nigerian Bitumen Corporation led exploratory work in the nation. [19] Commercially viable oil was discovered by Shell in 1956 roughly 90 kilometres (56 mi) west of the soon-to-be oil capital of Port Harcourt at Oloibiri, now in Bayelsa State; initially a 50–50 profit sharing system was implemented between the company and the government. It is estimated that demand and consumption of petroleum in Nigeria grows at a rate of 12.8% annually. According to Amnesty International in 2006, 70% of the people in the Niger River Delta live on less than US$1 per day. Shell ignites new gas flare at Gbarantoru, Nigeria. Some of these factors are discussed below: Season: The most important factor that determines the cost of palm oil in Nigeria is the time of the year. Gas flaring in Nigeria releases large amounts of methane, which has a very high global warming potential. First it takes the men out of the community as they go in search of work. As the government officials siphon off all the money generated from oil sales the infrastructure suffers. At this juncture, the oil producing states of the Niger Delta were accounting for 82% of all federal government revenue but the population of these areas received very little compensation and demands for adequate reimbursement for the black gold extracted from their land could be heard at this time. Another alleges that the federal government siphoned off about $12.2 billion between 1988 and 1994 into private accounts or expenditures, "clandestinely undertaken while the country was openly reeling with a crushing external debt".[19]. [3] But after nearly 50 years searching for oil in the country, Shell-BP discovered oil at Oloibiri in the Niger Delta. [35], A report analysing the effect of oil theft in Nigeria revealed in July 2013 that Nigeria lost $10.9 billion in potential oil revenues between 2009 and 2011.[38]. [48] For many people, this means finding work in a labour market which is in many instances hostile to them. By expanding to deep water drilling the possible sources for finding new oil reserves is expanded. Coastal Nigerians established thriving trade both regionally and abroad, fashioning the coast into a hub for products like palm oil, a good sought after by rapidly industrialising Europe, while also serving as key source for the slave trade prior to its international banning (the region came to be known as the Slave Coast as a result). p. 18, Shell International Petroleum Company, Developments in Nigeria (London: March 1995). In May 1971 the Nigerian federal government, then under the control of General Yakubu Gowon, nationalised the oil industry by creating the Nigerian National Oil Corporation via a decree. Mobil operates primarily out of the Qua Iboe Terminal in Akwa Ibom State, while Chevron owns the Escravos Terminal located in Delta State and has a storage capacity of 3.6 million barrels (570,000 m3). The group declared that the Ogoni people, a small minority in Rivers state of Nigeria, were slowly being annihilated as the arable terrain of their homeland (known as Ogoniland) was degraded by pollution from oil production by Chevron and primarily Shell. Ever since the Biafra war (1967-1970), largely fought over the lucrative Niger Delta, the struggle for the control and sharing of the oil and gas resources in this area has … [20] Recent evidence has suggested a tax battle waged by American oil companies contributed to the regional and ethnic tensions that would lead to the outbreak of war. Until the late 1950s concessions on production and exploration continued to be the exclusive domain of the company, then known as Shell-British Petroleum. With tensions stoked between the Eastern region and Gowon's federal government, on 4–5 January 1967, in compliance with Ojukwu's desire to meet for talks only on neutral soil, a summit attended by Gowon, Ojukwu and other members of the Supreme Military Council was held at Aburi in Ghana, the stated purpose of which was to resolve all outstanding conflicts and establish Nigeria as a confederation of regions. (2003). Deepwater Africa reaches turning point. There are four major oil refineries: the Warri Refinery and Petrochemical Plant which can process 125,000 barrels (19,900 m3) of crude per day, the New Port Harcourt Refinery which can produce 150,000 barrels (24,000 m3) per day (there is also an 'Old' Port Harcourt Refinery with negligible production), as well as the now defunct Kaduna Refinery. Since the discovery of oil in Nigeria, serious concerns have been raised over the impacts of oil pollution, particularly in the Niger Delta region. Retrieved 8 May 2007, from, United States Energy Information Administration, Learn how and when to remove this template message, Heads of the Federal Military Government of Nigeria, Head of the Supreme Military Council of Nigeria, Movement for the Survival of the Ogoni People, "Niger Delta Oil Production, Reserves, Field Sizes Assessed", http://news.bbc.co.uk/2/hi/africa/7840310.stm, "Nigeria's Crude Oil Falls To 1.999mbpd From 2.081m", http://www.oilandgascouncil.com/expert_insight_articles/review-nigeria-oil-gas-industry, US Shuts its Door on Nigeria's Oil Exports, "How Nigeria's lucrative oil profits disappear", "Billionaire's huge Nigerian oil refinery likely delayed until 2022: sources", "Oil, British Interests and the Nigerian Civil War*", "U.S. Oil Companies, the Nigerian Civil War, and the Origins of Opacity in the Nigerian Oil Industry", http://www.transparency.org/cpi2014/results, The Price of Oil: Corporate Responsibility and Human Rights Violations in Nigeria's Oil Producing Communities, "Shell and Ogoni People: (s)oil pollution in the Niger Delta", "Amni International Petroleum – Development Company Limited", "Emerald Energy Resources Limited - Nigerian Indigenous Oil and Gas", http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=75700003&site=ehost-live, https://www.nytimes.com/2012/01/10/world/africa/nigerians-protest-oil-price-rise-as-subsidies-end.html, http://find.galegroup.com/gtx/infomark.do?&source=gale&srcprod=AONE&prodId=AONE&userGroupName=uiuc_uc&tabID=T002&docId=A126748348&type=retrieve&contentSet=IAC-Documents&version=1.0, Nigeria to start rehabilitation of oil joint venture facilities, GAS FLARING IN NIGERIA: A HUMAN RIGHTS, ENVIRONMENTAL AND ECONOMIC MONSTROSITY, Shell, Nigeria and the Ogoni: A Study in Unsustainable Development: I. However, since the southeast encompassed most of the petroleum-rich Niger Delta, the prospect emerged of the Eastern Region gaining self-sufficiency and increasing prosperity. [14] The amount of oil extracted from Nigeria was expected to expand from 15,000 barrels per day (2,400 m3/d) in 2003 to 1.27 million barrels per day (202,000 m3/d) in 2010. Inevitably these financial favours are distributed unequally and inefficiently, resulting in concentration of wealth and power in the hands of a small minority. [16] gas reserves. According to the International Energy Agency, in 2011, approximately 33 percent of Nigeria's crude exports were sent to the United States, making Nigeria its fourth largest foreign oil supplier. Nigeria: Nigeria Losing 0.2m Barrels of Oil Daily to Theft, Vandalism - NNPC AllAfrica 04:54 25-Feb-21 Nigeria loses N151.78bn crude oil monthly – NNPC The Punch 03:07 25-Feb-21 NNPC losses 200,000b daily to theft The Nation, Nigeria 18:47 24-Feb-21 Such repressive measures were employed to ensure victory in the forthcoming elections, and this outcome was achieved largely through the bankrupting of the federal government's treasury. [47] The deterioration of the infrastructure in the delta states is so severe it is even a problem in the more urban areas. However, many of our people live in poverty. The 1980s military juntas conducted several attempted re-organisations of the NNPC to increase its efficiency. In 2020, its daily production exceeded two million barrels. The methane is accompanied by carbon dioxide, of which Nigeria is estimated to have emitted more than 34.38 million tons in 2002, accounting for about 50% of all industrial emissions in the country and 30% of the total CO2 emissions. However, other firms became interested and by the early 1960s Mobil, Texaco, and Gulf had purchased concessions.[10]. [39], Oil spills in Nigeria are a common occurrence; it has been estimated that between 9 and 13 million barrels (1,400,000 and 2,100,000 m3) have been spilled since oil drilling started in 1958. Offshore spills, which are usually much greater in scale, contaminate coastal environments and cause a decline in local fishing production. Additionally, 1980 saw oil-generated revenues attain an all-time high of US$24.9 billion but Nigeria still managed an international debt of $9 billion. Ethnic and political unrest has continued throughout the 1990s and persists as of 2006 despite the conversion to a more democratic, civilian federal system under the Obasanjo government in 1999; democracy has to some degree fan the flames as politicians seeking office may now employ militia groups to coerce voters and generally disrupt the election process. Nigeria is the sixth largest exporter of crude oil in the world market. However, Nigeria ceased exports to the US in July 2014 because of the impact of shale production in America; India is now the largest consumer of Nigerian oil. The Babangida junta has been widely accused of "mismanaging" the oil windfall from the Gulf War price jump, which accounted for about $12.5 billion in revenues. To a growing degree, the labour force for the oil companies is coming from Nigeria. Part of a fence was not properly maintained and an Air France flight hit a herd of cattle on the runway in 2005. It is the largest wetland and maintains the third-largest drainage area in Africa. The federal military government which assumed power under General Aguiyi-Ironsi was unable to quiet ethnic tensions or produce a constitution acceptable to all sections of the country. [12] However, petroleum products are unavailable to most Nigerians and are quite costly, because almost all of the oil extracted by the multinational oil companies is refined overseas, while only a limited quantity is supplied to Nigerians themselves. As of 2000, oil and gas exports accounted for more than 98% of export earnings and about 83% of federal government revenue, as well as generating more than 14% of its GDP. This brand of oil meets the strictest OEM standards. Due to the many forms of oil-generated environmental pollution evident throughout the region, farming and fishing have become impossible or extremely difficult in oil-affected areas, and even drinking water has become scarce. Shell also owns the Forcados Terminal, which is capable of storing 13 million barrels (2,100,000 m3) of crude oil in conjunction with the nearby Bonny Terminal. Vanity Fair.com. In the pursuit of commercially available petroleum, Shell-BP found oil in Oloibiri, Nigeria in 1956. The company was crucial in securing most of Nigeria's major ports and monopolised coastal trade; this resulted in the severing of the ties which had linked the area to the flourishing West African regional trade network, in favour of the exportation of cheap natural resources and cash crops to industrialising nations. Oil Spill at Ikarama Community, Nigeria. [48] Another, more extreme example happened in 1994. However, these measures were largely transparent and the looting of federal coffers by Nigeria's rulers continued largely unabated,[19] "as Shagari's officers – both within party and government – left the country, came in and out as they pleased, while Burahi's tribunal sentence opposition figures to spells of between a hundred and three hundred years in prison for every dubious kind of crime". Quartz Total 9000 Energy 5W40 engine oil. Nearly all of the country's primary reserves are concentrated in around the delta of the Niger River, but off-shore rigs are also prominent in the well-endowed coastal region. In October 1960 Nigeria gained full independence from Britain with the British monarch continuing to preside as Head of State, but the country quickly altered its relationship with its former colonizers by declaring Nigeria a republic of three federated states (the Eastern, Western and Northern Regions). Oil was discovered in non-commercial quantities at Akata, near Eket in 1953. The scale of corporate deals between privately held businesses and their investors in Nigeria’s oil and gas sector is at the lowest ebb in five years, as transactions hit a low of $123 billion in 2020, a sharp decline compared to a record high of $301 billion recorded in 2018. Nigeria is the largest oil and gas producer in Africa. Production of crude oil began in 1957, and in 1960 a total of 847,000 tonnes of crude oil was exported. Retrieved 2 May 2007, from, Amnesty International. The capital of Imo is Owerri. The soldiers claimed that the protestors were armed, which the protestors denied. 1975: Decree 6 increases federal government share in oil sector to 80%, with only 20% going to the states. Following the NNOC's genesis, the Nigerian government continued to garner control over oil revenues. Babangida's rule also oversaw the annihilation of the Nigerian economic middle class, and Nigeria's entry to the Organisation of the Islamic Conference, despite Muslims accounting for less than 50% of the Nigerian populace. Currently, Nigeria is the largest oil producer in Africa and the production of petroleum in the country plays a dominant role in the economy with over 90% of gross earnings coming from crude oil. Nigeria: Oil, Poverty and Violence. 1978: Perhaps most importantly, the federal government created the Land Use Act which vested control over state lands in military governors appointed by the federal military regime, and eventually led to Section 40(3) of the 1979 constitution which declared all minerals, oil, natural gas, and natural resources found within the bounds of Nigeria to be legal property of the Nigerian federal government.[19]. They razed 30 villages, arrested hundreds of protestors, and killed an estimated 2,000 people. Shell alone saw a drop from 367,000 barrels per day (58,300 cubic metres per day) in 1966, to 43,000 (6,800) in 1968. Red tape and poor organisation are standard, with the NNPC being divided into several sub-entities, each fulfilling a particular function. Nigeria’s oil is situated in Niger Delta around the coastal areas of south-east Nigeria. There is large-scale corruption amongst the elected leaders especially governors,[52][53] and the leaders have helped sponsor the militant groups kidnapping innocent people and sabotaging efforts by the federal government for infrastructure development. [40] The process of remediating some of the contaminated site was conducted in Kwawa community, Khana Local Government Area of Rivers State, after the United Nations Environment Programme (UNEP) released an environmental assessment of Ogoniland in 2011, a remediation project popularly refer to as OGONI CLEAN-UP.[41]. [45] While the international community, the Nigerian government, and the oil corporations seem to agree that gas flaring need to be curtailed, efforts to do so have been slow and largely ineffective.[45]. [55], Implications and causes of civil war (1966–1970), Return to military rule and electoral annulment (1983–1993). Books and Writers. However, it was during the years of Gowon and his successors Murtala Mohammed and Olusegun Obasanjo known officially as the Heads of the Federal Military Government of Nigeria, who ruled amidst the oil boom of the 1970s that the political economy of petroleum in Nigeria truly became characterised by endemic patronage and corruption by the political elites, which plagues the nation to this day. [22] The United States declared neutrality, with US Secretary of State Dean Rusk stating that "America is not in a position to take action as Nigeria is an area under British influence". [19], Interest in Nigerian oil originated in 1914 with an ordinance making any oil and mineral under Nigerian soil legal property of the Crown. The outcome of this summit was the Aburi Accord, the differing interpretations of which would soon cause Ojukwu to declare Biafran independence and plunge Nigeria into civil war. Chevron is also attempting to create the Escravos Gas Utilization project which will be capable of producing 4,500,000 m3 (160×10^6 cu ft) per day. Most of the villages do not have electricity or even running water. [10], The sudden jump in oil prices caused by the First Gulf War in 1990 and 1991, as most researchers confirm, was at best squandered. Oil was first discovered in commercial quantity in Nigeria in 1956. This incredibly well-endowed ecosystem, which contains one of the highest concentrations of biodiversity on the planet, in addition to supporting an abundant flora and fauna, arable terrain that can sustain a wide variety of crops, economic trees, and more species of freshwater fish than any ecosystem in West Africa. Shagari and his subordinates steadily transformed Nigeria into a police state where Nigerian military and police forces were permitted to utilise force quite liberally in order to control the civilian population.