Nigeria’s oil and gas industry is undergoing major shifts, with new policies, production updates, and market trends shaping the sector. Here’s a breakdown of the latest developments as of February 7, 2025.
Contents
1. Restarting Oil Production in Ogoniland
The Nigerian government is engaging with local communities to resume oil production in Ogoniland after Shell’s recent divestment of its onshore assets. While some residents support this move for economic growth, environmental activists are calling for proper remediation before production resumes.
2. New Export Permit Rules for Oil Producers
To ensure compliance with the Petroleum Industry Act, Nigeria’s upstream oil regulator has warned that oil producers must meet domestic supply obligations before exporting. This means refineries like Dangote’s must receive their quota before any crude is shipped abroad.
Table: Nigeria’s Petroleum Market Overview (February 7, 2025)
| Category | Details |
|---|---|
| Crude Oil Price (Brent) | $80 per barrel |
| Fuel Prices (PMS) | 210 NGN per liter ($0.25) |
| Diesel Price | 300 NGN per liter ($0.38) |
| Kerosene Price | 340 NGN per liter ($0.43) |
| Cooking Gas Price (per kg) | 1,200 NGN ($1.50) |
| OPEC Oil Output (January 2025) | Declined due to lower Nigerian and Iranian exports |
| Gas Flaring Reduction | 96% cut at Anyala and Madu fields |
3. Decline in OPEC Oil Output
OPEC’s total oil output dropped in January 2025, with Nigeria and Iran contributing to the decline. This development has raised concerns over Nigeria’s production efficiency and export capabilities.
4. Gas Flaring Reduction and Environmental Efforts
Nigeria has achieved a 96% reduction in gas flaring at the Anyala and Madu fields. This aligns with the country’s climate goals and commitment to reducing greenhouse gas emissions.
Revenue as Nigeria’s New ‘Crude Oil’: The Future of Economic Growth
5. New Environmental Regulations for Oil Licenses
As of January 2025, any oil company applying for a new license in Nigeria must prove its commitment to low-carbon operations and renewable energy integration. This aligns with Nigeria’s net-zero emissions target by 2060.
Conclusion
Nigeria’s petroleum industry is evolving with new policies, environmental commitments, and production challenges. As the government enforces stricter regulations and boosts local refining capacity, these changes will impact fuel prices, economic stability, and global trade partnerships.
Sources: