Nigeria's NNPC Faces Major Oil Production Challenges

Between 2019 and 2023, Nigeria's oil production was severely impacted by organized crime syndicates and sabotage, resulting in substantial economic losses. The Nigerian National Petroleum Corporation (NNPC) reported a loss of approximately $7.2 billion in 2021 due to theft and sabotage, with daily losses peaking at 200,000 barrels per day.

By 2022, these losses escalated to $22.4 billion. The Trans-Niger Pipeline, operated by Shell Petroleum Development Company, was heavily compromised with illegal connections, leading to prolonged shutdowns.

Additionally, the Atlas Cove–Ibadan pipeline corridor faced severe disruptions from illegal siphoning and explosions. Data from the Nigeria Extraction Industries Transparency Initiative indicated that millions of barrels were compromised, valued at over $3.3 billion, during a critical period spanning 2022 to 2024.

The situation has prompted efforts to restore production levels to OPEC targets of 1.5 million barrels per day and above.