Nigeria's Oil Sector: More Companies, Stagnant Production

As of June 2023, Nigeria's oil industry has registered 117 operating companies in the upstream sector, a significant increase from fewer than 10 in 2010. The Nigerian Content Development and Monitoring Board (NCDMB) reported that local content has risen to 61 percent, with 11,934 direct jobs created.

However, oil production has stagnated, hovering between 1.4 million and 1.7 million barrels per day, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This output is a stark contrast to the 2.5 million to 2.6 million barrels per day achieved between 2005 and 2010.

The NCDMB's data indicates that despite the increase in licensed companies, the actual production has not improved, with many dormant wells remaining unreactivated. The report emphasizes the paradox of having more licensed operators while production levels decline, highlighting the challenges faced by the industry in optimizing resources and ensuring security for operations.