Petroleum industry in Nigeria

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Nigeria is the largest oil and gas producer in Africa. Crude oil from the delta basin comes in two types: light, and comparatively heavy – the lighter around 36 gravity and the heavier, 20–25 gravity. Both types are paraffinic and low in sulfur.[1]

The gates of the oil refinery in Port Harcourt

History of oil exploration[edit]

The history of oil exploration in Nigeria dates back to 1903 when Nigerian Bitumen Corporation conducted exploratory work in the country, at the onset of World War I the firm's operation were stopped. Due to the lack of technological and financial resources by small oil companies, large oil companies took over the exploration of commercial oil in the country. Thereafter, licenses were given to D'Arcy Exploration Company and Whitehall Petroleum but neither company found oil of commercial value and they returned their licenses in 1923.[2] A new license covering 920,000 square kilometres (357,000 square miles) was given to Shell D'arcy Petroleum Development Company of Nigeria, a consortium of Shell and British Petroleum (then known as Anglo-Iranian). The company began exploratory work in 1937. The consortium was granted license to explore oil all over the territory of Nigeria but the acreage allotted to the company in the original license was reduced in 1951 and then between 1955 and 1957. Drilling activities started in 1951 with the first test well drilled in Owerri area. Oil was discovered in non-commercial quantities at Akata, near Eket in 1953.[2] Prior to the Akata find, the company had spent around 6 million pounds on exploratory activities in the country. Shell-BP in the pursuit of commercially available petroleum found oil in Oloibiri, Nigeria in 1956. Other important oil wells discovered during the period were Afam and Bomu in Ogoni territory. Production of crude oil began in 1957 and in 1960, a total of 847,000 tonnes of crude oil was exported. Towards the end of the 1950s, non-British firms were granted license to explore for oil: Mobil in 1955, Tenneco in 1960, Gulf Oil and later Chevron in 1961, Agip in 1962, and Elf in 1962. Prior to the discovery of oil, Nigeria (like many other African countries) strongly relied on agricultural exports to other countries to supply their economy. Many Nigerians thought the developers were looking for palm oil.[3] But after nearly 50 years searching for oil in the country, Shell-BP discovered the oil at Oloibiri in the Niger Delta. The first oil field began production in 1958.[4]

After that, the economy of Nigeria should have seemingly have experienced a strong increase. However, competition for the profits from oil created a great level of terror and conflict for those living in the region. Many citizens of Nigeria believe that they haven't been able to see the economic benefits of oil companies in the state. 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]

Production and exploration[edit]

Satellite image of Niger Delta


Nigeria's proven oil reserves are estimated by the United States Energy Information Administration (EIA) at between 16 and 22 billion barrels (2.5×109 and 3.5×109 m3),[5] but other sources claim there could be as much as 35.3 billion barrels (5.61×109 m3). Its reserves make Nigeria the tenth most petroleum-rich nation, and by the far the most affluent in Africa. In mid-2001 its crude oil production was averaging around 2,200,000 barrels (350,000 m3) per day.[citation needed] It is expected that the industry will continue to be profitable based on an average bench mark oil price of $85-$90 per barrel.[6]


Nigeria has a total of 159 oil fields and 1481 wells in operation according to the Department of Petroleum Resources.[7] The most productive region of the nation is the coastal Niger Delta Basin in the Niger Delta or "South-south" region which encompasses 78 of the 159 oil fields. 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. This contrasts with the sixteen largest fields which produced 37.9% of Nigeria's petroleum at that time.[8]

As a result of the numerous small fields, an extensive and well-developed pipeline network has been engineered to transport the crude oil. Also because of the lack of highly productive fields, money from the jointly operated (with the federal government) companies is constantly directed towards petroleum exploration and production.

Nigeria's petroleum is classified mostly as "light" and "sweet", as the oil is largely free of sulfur. Nigeria is the largest producer of sweet oil in OPEC. This sweet oil is similar in composition to petroleum extracted from the North Sea. This crude oil is known as "Bonny light". Names of other Nigerian crudes, all of which are named according to export terminal, are Qua Ibo, Escravos blend, Brass River, Forcados, and Pennington Anfan.

As recently as 2010, Nigeria provided about 10% of overall U.S. oil imports and ranked as the fifth-largest source for oil imports in the U.S. 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.[9]



Oil companies in Africa investigate offshore production as an alternative area of production. Deepwater production mainly involves underwater drilling that exists 400 metres (1,300 ft) or more below the surface of the water. By expanding to deep water drilling the possible sources for finding new oil reserves is expanded. Through the introduction of deep water drilling 50% more oil is extracted than before the new forms of retrieving the oil.[11]

Angola and Nigeria are the largest oil producers in Africa. In Nigeria, the deepwater sector still has a large avenue to expand and develop. The Agbami oilfields hit full production in 2005, at 250,000 barrels (40,000 m3) a day. Operated by Chevron's Star Deep and a company called Famfa, Agbami is only one off-shore concession; there are others named Akpo, Bonga and Erha.[12] 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.[11] Deepwater drilling for oil is especially attractive to oil companies because the Nigerian government has very little share in these activities and it is more difficult for the government to regulate the offshore activities of the companies.[11]

The deepwater extraction plants are less disturbed by local militant attacks, seizures due to civil conflicts, and sabotage.[11] These advancements offer more resources and alternatives to extract the oil from the Niger Delta, with less exposure to conflict than the operations on land. An open-air market for illegal crude oil operates off the Niger Delta, called the Togo Triangle.[13]

Natural gas[edit]

Natural gas reserves are well over 5,300 km3 (187×10^12 cu ft), the gas reserves are three times as substantial as the crude oil reserves. The biggest natural gas initiative is the Nigerian Liquified Natural Gas Company, which is operated jointly by several companies and the state. It began exploration and production in 1999. 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.[14] gas reserves. 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.[15] There is also an export gas pipeline, known as the West African Gas Pipeline, in the works but has encountered numerous setbacks. The pipeline would allow for transportation of natural gas to Benin, Ghana, Togo, and Cote d'Ivoire. The majority of Nigeria's natural gas is flared off and it is estimated that Nigeria loses 18.2 million US$ daily from the loss of the flared gas.[14]


Nigeria's total petroleum refining capacity is 445,000 barrels (70,700 m3) per day, however, only 240,000 barrels (38,000 m3) per day was allotted during the 1990s. Subsequently, crude oil production for refineries was reduced further to as little as 75,000 barrels (11,900 m3) per day during the regime of Sanni Abacha. 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. The Port Harcourt and Warri Refineries both operate at only 30% capacity.[10] The Dangote Refinery, expected to open in the early 2020s, will have a 650,000 barrels (103,000 m3) daily capacity.[16]

It is estimated that demand and consumption of petroleum in Nigeria grows at a rate of 12.8% annually.[10] 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.

Current manufacturing[edit]

Nigeria is Africa's largest oil producer and has been a member of the Organization of Petroleum Exporting Countries since 1971. 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. According to the International Energy Agency, Nigeria produced about 2.53 million barrels (402,000 m3) per day, well below its oil production capacity of over 3 million barrels (480,000 m3) per day, in 2011.



As a result, Nigerian crude as a share of total United States imports has fallen to 5 percent in the first half of 2012, down from 10 and 11 percent in the first half of 2011 and 2010, respectively, according to the International Energy Agency. According to the CIA World Factbook, Nigeria's main export partners are the United States, India, Brazil, Spain, France, and the Netherlands. Shell has been working in Nigeria since 1936, and currently dominates gas production in the country, as the Niger Delta, which contains most of Nigeria's gas resources, also houses most of Shell's hydrocarbon assets.

History and politics[edit]

An Ethno-linguistic map of Nigeria.



By contrast, the Yoruba, the Igbo and the Efik in the south had regularly experienced contact with Europeans since at least the 16th century. A minority of southerners converted to Christianity even prior to the establishment of permanent British control, but the majority followed traditional indigenous religions, worshipping myriad deities with vast domains spanning both cosmic and terrestrial spheres.



The eastern Niger Delta region has the Efik people (Annang / Efik / Ibibio who are all related with a common language and ancestors who were all referred to as Efik or Calabar people in early Nigerian history). Their capital city of Calabar, located at the coastal southeast of Nigeria (eastern Niger Delta) served as the major trading and shipping center during the pre-colonial and colonial period. Calabar also served as the first capital of Nigeria and the point of entry of Western religion and Western education into southeastern Nigeria. The combined population of the Ibibio, Annang, and Efik people is the fourth largest language group in Nigeria.

Colonial legacy (1800s–1960s)[edit]

Even before the consolidation of British control over all of present-day Nigeria's borders in 1914 from the protectorates of Southern and Northern Nigeria, British forces had begun imposing drastic political and economic policies on the Nigerian people which would lead to important consequences in the future. Originally this was done primarily through the government-owned Royal Niger Company. 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. Most of the population eventually abandoned food production for such market-dependent crops (peanuts and cotton in the north, palm oil in the east, and cocoa in the west).[17] From the beginning, divide and rule tactics were employed by both traders and administrators, highlighting ethno-religious differences and playing groups against one another. After 1914, the north was permitted a system of indirect rule under authoritarian leaders, while in the south the British exercised control directly.[17]

Interest in Nigerian oil originated in 1914 with an ordinance making any oil and mineral under Nigerian soil legal property of the Crown. By 1938 the colonial government had granted the state-sponsored company, Shell (then known as Shell D'Arcy) a monopoly over the exploration of all minerals and petroleum throughout the entire colony.[17] 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. Until the late 1950s concessions on production and exploration continued to be the exclusive domain of the company, then known as Shell-British Petroleum. However, other firms became interested and by the early 1960s Mobil, Texaco, and Gulf had purchased concessions.[8]






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. It was also during this period that, again thanks to the Americans, the opacity and concomitant corruption of Nigerian oil began to crystallise.[18] However, evidence from leaked US State Department documents have proven that Britain, through Shell-BP,[19] still held the most influence over the Nigerian oil industry at the time the war broke out.[19] 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] but nevertheless provided military assistance to the Nigeria government.[19]

On top of scores of deaths, the war had a largely negative impact on the oil industry. Strife caused production of crude to drop significantly, particularly in Biafra. Total crude output decreased from 420,000 barrels per day (67,000 cubic metres per day) in 1966 at the start of the war, to only 140,000 barrels per day (22,000 cubic metres per day) in 1968. 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. And in addition to concerns about production, oil companies began experiencing uncertainty as to the future of their investments depending on who prevailed in the war. This led to relations between oil companies and the federal government becoming strained, with the government at one point accusing the oil company Safrap (now TotalFinaElf, but Elf until 1974) of favouring Biafra and enlisting the aid of France for the Biafran cause. Shell, the other major holder of concessions in the southeast, was concerned but placated and limited politically by Britain's staunch support of the Nigerian government in the war effort.[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.[8] However, the former Eastern Region had been split into two new states, Rivers and South-Eastern (now Cross River) in order to discourage lingering ideas of independence.[citation needed]

Industry nationalisation (1970–1979)[edit]



Following the NNOC's genesis, the Nigerian government continued to garner control over oil revenues. 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. The military regime oversaw the implementation of a number of other important milestones related to oil:


1975: Decree 6 increases federal government share in oil sector to 80%, with only 20% going to the states.


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.[17]


Attempted democracy and debt (1979–1983)[edit]


A 1982 Revenue Act implemented by the Shagari government would eventually be modified by yet another military regime in 1984 via Decree 36 which reduced the government share of oil revenue from 80% to 55%. States got 32.5% and 10% went to local governments.[21] The remaining 1.5% was earmarked as a special fund to new develop oil-producing areas, but during the Shagari regime the corruption in Nigerian governance reached its zenith and capital flight out of Nigeria peaked, while people in the oil-producing areas continued to receive little or none of the oil profits. 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.



Return to military rule and electoral annulment (1983–1993)[edit]







An environment of crisis (1993–present)[edit]

Shonekan's interim government would be short-lived, as on 17 November 1993, Babangida's former Chief of Army Staff and Minister of Defence Sani Abacha overthrew the caretaker regime and installed himself as Head of State. Popular opposition to the junta was widespread and public demonstrations were taking place on a regular basis. Immediately upon taking power, Abacha commenced the brutal repression of these subversive elements which would make his tenure notorious on a global basis.




On 30 January 2013, a Dutch court ruled that Shell can be held accountable for the pollution in the Niger Delta.[23]

Operating agreements[edit]

Details and nature of the relationship between the government and the operating companies are governed by three types of agreements, joint ventures, production sharing contracts and service contracts.[24]

Joint-venture companies[edit]

Royal Dutch Shell (British/Dutch)
Chevron (American)
Chevron Nigeria Limited (CNL): A joint venture between NNPC (60%) and Chevron (40%) has in the past been the second largest producer (approximately 400,000 barrels per day (64,000 cubic metres per day)), with fields located in the Warri region west of the Niger river and offshore in shallow water. It is reported to aim to increase production to 600,000 barrels per day (95,000 cubic metres per day).
Exxon-Mobil (American)
Mobil Producing Nigeria Unlimited (MPNU): A joint venture between the NNPC (60%) and Exxon-Mobil (40%) operates in shallow water off Akwa Ibom state in the southeastern delta and averaged production of 632,000 barrels per day (100,500 cubic metres per day) in 1997, making it the second largest producer, as against 543,000 barrels per day (86,300 cubic metres per day) in 1996. Mobil also holds a 50% interest in a Production Sharing Contract for a deep water block further offshore, and is reported to plan to increase output to 900,000 barrels per day (140,000 cubic metres per day) by 2000. Oil industry sources indicate that Mobil is likely to overtake Shell as the largest producer in Nigeria within the next five years, if current trends continue, mainly due to its offshore base allowing it refuge from the strife Shell has experienced onshore. It is headquartered in Eket and operates in Nigeria under the subsidiary of Mobil Producing Nigeria (MPN).
Agip (Italian)
Nigerian Agip Oil Company Limited (NAOC): A joint venture operated by Agip and owned by the NNPC (60%), Agip (20%) and ConocoPhillips (20%) produces 150,000 barrels per day (24,000 cubic metres per day) mostly from small onshore fields.
Total (French)
Total Petroleum Nigeria Limited (TPNL): A joint venture between NNPC (60%) and Elf (now Total) produced approximately 125,000 barrels per day (19,900 cubic metres per day) during 1997, both on and offshore. Elf and Mobil are in dispute over operational control of an offshore field with a production capacity of 90,000 barrels per day (14,000 cubic metres per day).
Texaco (now merged with Chevron)
NNPC Texaco-Chevron Joint Venture (formerly Texaco Overseas Petroleum Company of Nigeria Unlimited): A joint venture operated by Texaco and owned by NNPC (60%), Texaco (20%) and Chevron (20%) currently produces about 60,000 barrels per day (9,500 cubic metres per day) from five offshore fields.[21]

Current situation[edit]

Nigeria's oil revenue has totaled $340 billion in exports since the 1970s and it is the fifth largest producer.[25] Though Nigeria is a major oil exporter, it imports most of its gasoline, and when fuel subsidies were lifted in January 2012, fuel increased from roughly $1.70 per gallon to $3.50.[26] 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.[27] But this, some say, is all a resource curse that is hurting Nigeria and disadvantaging her people.[28]

Oil theft[edit]

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.[29]

Environmental impact[edit]

Map of vegetation in Nigeria

The Niger Delta comprises 70,000 square kilometres (27,000 square miles) of wetlands formed primarily by sediment deposition. Home to more than 20 million people and 40 different ethnic groups, this floodplain makes up 7.5% of Nigeria's total land mass. It is the largest wetland and maintains the third-largest drainage area in Africa. The Delta's environment can be broken down into four ecological zones: coastal barrier islands, mangrove swamp forests, freshwater swamps, and lowland rainforests.

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. The region could experience a loss of 40% of its inhabitable terrain in the next thirty years because of extensive dam construction in the region. The carelessness of the oil industry has also precipitated this situation, which can perhaps be best encapsulated by a report issued by the NNPC in 1983, long before popular unrest surfaced:


Oil spills and water contamination[edit]

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.[31] The government estimates that about 7,000 spills occurred between 1970 and 2000.[31] Causes include corrosion of pipelines and tankers (accounts for 50% of all spills), sabotage (28%), and oil production operations (21%), with 1% of the spills being accounted for by inadequate or non-functional production equipment. One reason that corrosion accounts for such a high percentage of all spills is that as a result of the small size of the oilfields in the Niger Delta, there is an extensive network of pipelines between the fields. Many facilities and pipelines were constructed to older standards, are poorly maintained and have outlived their estimated life span.[32][33] Sabotage is performed primarily through what is known as "bunkering", whereby the saboteur taps a pipeline, and in the process of extraction sometimes the pipeline is damaged. Oil extracted in this manner is often sold for cash compensation.

Oil spills have a major impact on the ecosystem. Large tracts of mangrove forests have been destroyed. They are especially susceptible to oil spills because the oil is stored in the soil and re-released annually with each inundation. An estimated 5–10% of Nigerian mangrove ecosystems have been wiped out either by settlement or by oil. Spills also take out crops and aquacultures through contamination of groundwater and soils. Drinking water is frequently contaminated, and a sheen of oil is visible in many localised bodies of water. If the drinking water is contaminated, even if no immediate health effects are apparent, the numerous hydrocarbons and other chemicals present in oil represent a carcinogenic risk. Offshore spills, which are usually much greater in scale, contaminate coastal environments and cause a decline in local fishing production.

Nigerian regulations are weak and rarely enforced allowing oil companies, in essence, to self-regulate.[31]

Natural gas flaring[edit]

Nigeria flares more natural gas associated with oil extraction than any other country, with estimates suggesting that of the 99,000,000 m3 (3.5×10^9 cu ft) of associated gas (AG) produced annually, 71,000,000 m3 (2.5×10^9 cu ft), or about 70%, is wasted via flaring. Statistical data associated with gas flaring is notoriously unreliable, but AG wasted during flaring is estimated to cost Nigeria US $2.5 billion on a yearly basis.[34] Companies operating in Nigeria harvest natural gas for commercial purposes, however most prefer to extract it gas from deposits where it is found in isolation as non-associated gas. It is costly to separate commercially viable associated gas from oil, hence gas is flared to increase crude production.

Gas flaring is discouraged by the international community as it contributes to climate change. In fact, in western Europe 99% of associated gas is used or re-injected into the ground. Gas flaring in Nigeria releases large amounts of methane, which has a very high global warming potential. 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. As flaring in the west has been minimised, in Nigeria it has grown proportionally with oil production.[35] 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.[35]

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. Often gas flares are often close to local communities, and lack adequate fencing or protection for villagers who may risk nearing the heat of the flare in order to carry out their daily activities. Flares which are often older and inefficient are rarely relocated away from villages, and are known to coat the land and communities in the area with soot and damage adjacent vegetation.


Human rights impact[edit]

Repression of protest and government corruption[edit]


According to the World Bank, most of Nigeria's oil wealth gets siphoned off by 1% of the population.[37] Corruption in the government is rampant, in fact since 1960 it is estimated that 300 to 400 billion dollars has been stolen by corrupt government officials.[37] The corruption is found at the highest levels as well. For example, a former inspector general of the national police was accused of stealing 52 million dollars. He was sentenced to six years in prison for a lesser charge.[37]

Nigerians have on many occasions engaged in protests against oil-related corruption and environmental concerns in the past, but have been met with harsh suppression by government forces. For example, in February 2005 at a protest at Chevron's Escravos oil terminal, soldiers opened fire on the protestors. One man was killed and 30 others were injured. The soldiers claimed that the protestors were armed, which the protestors denied.[38] Another, more extreme example happened in 1994. The Nigerian military moved into a region called Ogoniland in force. They razed 30 villages, arrested hundreds of protestors, and killed an estimated 2,000 people.[37]

One of the protestors they arrested was a man named Ken Saro-Wiwa, a Nigerian TV producer, writer and social activist. In 1990 he founded the Movement for the Survival of the Ogoni People (MOSOP). Ken wrote and spoke out about the rampant corruption in the Nigerian government and he condemned Shell and British Petroleum. He was arrested by the Nigerian government and imprisoned for 17 months. Then in a show trial he and eight others were condemned to death. He and the others were hung in 1995 and he was buried in an unmarked common grave.[39]

Poverty and chronic underdevelopment[edit]

Previous pipeline explosions in Nigeria
City Date Casualties[40]
Lagos 26 December 2007 at least 40
Lagos 26 December 2006 at least 260
Lagos 12 May 2006 at least 150
Lagos December 2004 at least 20
Lagos September 2004 at least 60
Abia June 2003 at least 105
Warri July 2000 at least 300
Abia March 2000 at least 50
Jesse October 1998 at least 1000

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. According to Amnesty International in 2006, 70% of the people in the Niger River Delta live on less than US$1 per day.[38] For many people, this means finding work in a labour market which is in many instances hostile to them. Much of the labour in the past has been imported. To a growing degree, the labour force for the oil companies is coming from Nigeria. But discrimination is rampant, and for the most part, locals are discriminated against.[36]


As the government officials siphon off all the money generated from oil sales the infrastructure suffers. Most of the villages do not have electricity or even running water.[41] They do not have good access to schools or medical clinics. For many, even clean drinking water is difficult to come by.[37] The deterioration of the infrastructure in the delta states is so severe it is even a problem in the more urban areas. One example of this is the airport at Port Harcourt. Part of a fence was not properly maintained and an Air France flight hit a herd of cattle on the runway in 2005. The airport was closed and still had not reopened by 2007.[37]

The leadership of the Niger Delta region appears responsible for most of the underdevelopment in the region. There is large-scale corruption amongst the elected leaders especially governors,[42][43] and the leaders have helped sponsor the militant groups kidnapping innocent people and sabotaging efforts by the federal government for infrastructure development.[44] Indicted corrupt leaders are also cheered by the Niger Delta people.[45]


  1. ^ David Thomas (13 November 1995). "Niger Delta Oil Production, Reserves, Field Sizes Assessed". Industry Briefs. Oil and Gas Journal.
  2. ^ a b Frynas, J. G. (1999). Oil in Nigeria: Conflict and litigation between oil companies and village communities. Münster: Lit Verlag.
  3. ^ a b Retrieved 26 November 2012
  4. ^ "Archived copy". Archived from the original on 10 April 2012. Retrieved 4 December 2012.CS1 maint: Archived copy as title (link) Retrieved 26 November 2012
  5. ^ U.S. Energy Information Administration (U.S. EIA), "Nigeria Country Analysis Brief", December 1997.
  6. ^
  8. ^ a b c d e Nigeria: The Political Economy of Oil ISBN 0-19-730014-6 (Khan, Ahmad)
  9. ^ US Shuts its Door on Nigeria's Oil Exports(
  10. ^ a b c Nigerian Crude and Gas Industry (
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  14. ^ a b Natural Gas(Online Nigeria Portal)
  15. ^ [1](
  16. ^ "Billionaire's huge Nigerian oil refinery likely delayed until 2022: sources". Reuters. 10 August 2018. Retrieved 13 October 2018.
  18. ^ Klieman, Kairn A. (2012). "U.S. Oil Companies, the Nigerian Civil War, and the Origins of Opacity in the Nigerian Oil Industry". Journal of American History. 1 (1): 155–165. doi:10.1093/jahist/jas072.
  19. ^ a b c d Awoyokun, Damola (19 February 2013). "BIAFRA: The Untold Story of Nigeria's civil war". P.M. News.
  20. ^
  23. ^ Raymond Ridderhof (15 February 2013). "Shell and Ogoni People: (s)oil pollution in the Niger Delta". Peace Palace Library. Retrieved 18 March 2014.
  24. ^ Frynas, Jedrzej Georg (1999). Oil in Nigeria : : conflict and litigation between oil companies and village communities. Münster: Lit Verlag. p. 81. ISBN 3825839214.
  25. ^ Retrieved 26 November 2012
  26. ^ Retrieved 26 November 2012
  27. ^ Retrieved 26 November 2012
  28. ^ Retrieved 26 November 2012
  29. ^ Nigeria loses $10.9bn to oil theft, South Africa:, 2013
  30. ^ [Quoted in Greenpeace International's Shell Shocked,11](Greenpeace)
  32. ^ Shell International Petroleum Company, Developments in Nigeria (London: March 1995)
  33. ^ Nigeria to start rehabilitation of oil joint venture facilities(
  34. ^ Media Briefing: Gas flaring in Nigeria Archived 29 September 2007 at the Wayback Machine (Friends of the Earth)
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  44. ^

External links[edit]