Oil & Energy
Pipeline Closures Plunge Nigeria’s Oil Production

The ambitious target of the Federal Government to boost exploration, production and increase in oil reserves to 40 billion barrels, and output to 3 million per day is significantly challenged following incessant pipeline closure and maintenance work at major oil fields.
This has plunged Nigerian crude oil output to nearly three decades low in recent weeks.
An independent analyst, S&P Global Commodity Insights, quoted unnamed senior official from the Ministry of Petroleum Resources, who porportedly said the fields supplying Bonny Light and Qua Iboe, which are the two leading export grades, were closed for maintenance in May but regular supply was “gradually returning.”
Contrary to the reports, other sources within the oil industry said the Trans Forcados and Nembe Creek pipelines had been sabotaged, and the flow through them has been intermittent throughout the past month.
Despite being Africa’s largest oil producer, Nigeria has been contending with security, operational, and technical problems in its major oil infrastructure since early 2021, with Nigerian Upstream Petroleum Regulatory Commission revealing that the country witnessed a 14 per cent month-on-month fall in crude and condensate production in May, translating to a 1.279 million b/d drop in output.
According to S&S Global estimates, the May month-on-month fall was the lowest in over three decades.
Nigeria’s crude and condensate production has dropped to almost 50 per cent of its production capacity, which is about 2.2 million barrels per day.
Most major oil fields, terminals, and facilities have encountered a barrage of problems, with the recent sustained attacks on oil facilities aggravating the situation.
Increasing cases of pipeline sabotage and insecurity in the Niger Delta are also slowing the growth outlook of Africa’s largest oil producer.
According to Platts Analytics, the Nigerian crude oil supply could rise to 1.5 million barrels per day from 1.4 million barrels per day in the fourth quarter of 2022.
“Political risk may worsen ahead of the elections in early 2023. Production has averaged approximately 300,000 b/d below its OPEC+ quota since mid-2021 due to technical outages, theft, sabotage, and force majeur,” said Patts Analytics.
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Dangote Refinery Resumes Gantry Self-Collection Sales, Tuesday
This is revealed in an email communication from the Group Commercial Operations Department of the company, and obtained by Newsmen, at the Weekend.
The company explained that while gantry access is being reinstated, the free delivery service remains operational, with marketers encouraged to continue registering their outlets for direct supply at no additional cost.
The statement said “in reference to the earlier email communication on the suspension of the PMS self-collection gantry sales, please note that we will be resuming the self-collection gantry sales on the 23rd of September, 2025”.
Dangote Petroleum Refinery also apologised to its partners for any inconvenience the suspension may have caused, while assuring stakeholders of its commitment to improving efficiency and ensuring seamless supply.
“Meanwhile, please be informed that we are aggressively delivering on the free delivery scheme, and it is still open for registration. We encourage you to register your stations and pay for the product to be delivered directly to you for free. We sincerely apologise for any inconvenience this may cause and appreciate your understanding,” it added.
It would be recalled that in September 18, 2025, Dangote refinery had suspended gantry-based self-collection of petroleum products at its depot. The move was designed to accelerate the adoption of its Free Delivery Scheme, which guarantees direct shipments of petroleum products to registered retail outlets across Nigeria.
The refinery stressed that the earlier decision was an operational adjustment aimed at streamlining efficiency in the downstream supply chain.
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