EIA said in its latest report that although Nigeria is the largest oil producer in Africa, with the largest natural gas reserves on the continent, as well as the world’s fourth-largest exporter of liquefied natural gas (LNG) in 2015, the country’s production is affected by sporadic supply disruptions.
“Nigeria is the largest oil producer in Africa and is among the world’s top five largest exporters of liquefied natural gas (LNG). Supply disruptions, typically caused by pipeline sabotage from thieves siphoning crude oil and condensate, are common in Nigeria’s oil and natural gas industries.
“Pipeline sabotage and oil supply disruptions have increased in 2016, leading to a decline in Nigeria’s crude oil production. Because Nigeria heavily depends on oil revenue, its economy is noticeably affected by changes to its oil production and/or to global crude oil prices,” said EIA.
Citing a recent report by the International Monetary Fund (IMF), EIA said the report revealed that Nigeria earned $52 billion from oil and gas exports in 2015, $35 billion less than in 2014, which was mostly attributed to the fall in oil prices that began in the middle of 2014.
EIA noted that while Nigeria’s oil production was hampered by instability and supply disruptions, the country’s natural gas sector is restricted by the lack of infrastructure to commercialise natural gas that is currently flared.
