Oil & Energy
Minister Blames Oil Production Reduction On Flow Stations Closure
The Minister of Finance and Cordinator of the Nation’s economy, Dr Ngozi Okonjo-Iweala has attributed reduction in the oil production level to force majure declared by some oil companies in the country due to increasing oil theft: The Minister was reported to have put the total loss to oil thieves at 300,000 barrels per day (bpd) translating to a monthly loss of revenue of N160 million.
Okonjo-Iweala who spoke in a press conference at the World Bank/International Monetary Fund (IMF) spring meeting in Washington DC, United States said the reduction in production level and drop in the prices of crude at the international market are threatening the funding of the 2013 Appropriation Act.
The Minister said less than the estimated 2.5 million barrels per day for the 2013 budget, the production level presently hover between 2.1 million bpd and 2.2 million barrels per day.
The 2013 N4.93 trillion budget was based on the speculation of a $79 – per barrel budget oil price, up from 2012 budget and the $75 per barrel proposed by the executive. She however assured that the $7 billion left in the Excess Crude Account (ECA) would only stabilize the shortfall within the next three months.
Meanwhile the Central Bank of Nigeria (CBN) had in its economic report for January released recently, disclosed that the country in January earned N599 billion from crude oil.
According to the report “Federally collected revenue (gross) in January 2013, at N774.8 billion, was below the provisional monthly budget estimate by 4.1 per cent but exceeded the receipt at the end of December 2012 by 1.8 per cent.
“The decline relative to provisional monthly budget estimate was attributed to the fall in non-oil revenue during the review period.
“At 599.0 billion, oil receipts (gross), which constitute 77.3 per cent of the total revenue exceeded the provisional budget estimate and receipts in the preceding month by 8.3 and 2.2 per cent respectively.
“The rise in oil receipts relative to the proportionate monthly budget estimate was attributed to increase in prices of crude oil in the international market during the review period”.
The reported added that relative to the level in the corresponding period of 2012, gross oil receipts however fell by 3.5 per cent non-oil receipts (gross), a t N175.8 billion or 22.7 per cent of the total was 31.6 and 13.8 per cent lower than the provisional monthly budget estimate and the receipts in 2012.
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Digital Technology Key To Nigeria’s Oil, Gas Future

Experts in the oil and gas industry have said that the adoption of digital technologies would tackle inefficiencies and drive sustainable growth in the energy sector.
With the theme of the symposium as ‘Transforming Energy: The Digital Evolution of Oil and Gas’, he gathering drew top industry players, media leaders, traditional rulers, students, and security officials for a wide-ranging dialogue on the future of Nigeria’s most vital industry.
Chairman of the Petroleum Technology Association of Nigeria (PETAN), Wole Ogunsanya, highlighted the role of digital solutions across exploration, drilling, production, and other oil services.
Represented by the Vice Chairman, Obi Uzu, Ogunsanya noted that Nigeria’s oil production had risen to about 1.7 million barrels per day and was expected to reach two million barrels soon.
Ogunsanya emphasised that increased production would strengthen the naira and fund key infrastructure projects, such as railway networks connecting Lagos to northern, eastern, and southern Nigeria, without excessive borrowing.
He stressed the importance of using oil revenue to sustain national development rather than relying heavily on loans, which undermine financial independence.
Comparing Nigeria to Norway, Ogunsanya explained how the Nordic country had prudently saved and invested oil earnings into education, infrastructure, and long-term development, in contrast to the nation’s monthly revenue distribution system.
Chief Executive Officer (CEO) and Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), Clement Using, represented by the Secretary of the Association, Ms Ogechi Nkwoji, highlighted the urgent need for stakeholders and regulators in the sector to embrace digital technologies.
According to him, digital evolution can boost operational efficiency, reduce costs, enhance safety, and align with sustainability goals.
Isong pointed out that the downstream energy sector forms the backbone of Nigeria’s economy saying “When the downstream system functions well, commerce thrives, hospitals operate, and markets stay open. When it fails, chaos and hardship follow immediately,” he said.
He identified challenges such as price volatility, equipment failures, fuel losses, fraud, and environmental risks, linking them to aging infrastructure, poor record-keeping, and skill gaps.
According to Isong, the solution lies in integrated digital tools such as sensors, automation, analytics, and secure transaction systems to monitor refining, storage, distribution, and retail activities.
He highlighted key technologies including IoT forecourt automation for real-time pump activity and sales tracking, remote pricing and reconciliation systems at retail fuel stations, AI-powered pipeline leak detection, terminal automation for depot operations, digital tank gauging, and predictive maintenance.
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