Problems Associated With Oil And Gas Business In Nigeria

Oil spills in Niger Delta – Corrosion of pipelines and tankers is the leaking of old production infrastructures that often do not receive inspection and maintenance.

. Pipeline vandalism – Deliberate act of destroying petroleum pipelines with the intention of stealing crude oil and other petroleum products.

. Crude oil theft – Nigeria loses over a million barrels to oil thieves daily. Most oil companies based their total production figures on unconfirmed volume estimates.

. Fuel pricing – Petrol price rises when the price of crude oil goes up in the international market and in such cases, Nigeria spends more to import refined products.

. Fire outbreak – Nigeria oil production has killed thousands of people from fire outbreaks to diseased water caused by oil spillage. For the latest Nigeria Oil and Gas news , always visit OrientalNews NIgeria


. Unreliable supply of gas – poor gas funding is a major challenge affecting the oil and gas industry.

. Inadequate pipeline infrastructure – According to Mordecai Laden, director, department of petroleum resources said “inadequate gas pipeline infrastructure is our major challenge in the domestic gas supply and market growth.”

. Environmental pollution – Environmental Pollution is a major issue in the oil sector. There are lot of oil and damaged pipelines still used today resulting to oil spill which degrades the environment. Check out the latest NNPC Breaking News on OrientalNews Nigeria

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Solutions to the challenges facing Oil and Gas business in Nigeria

The possible solutions to the challenges facing the Nigeria Oil and Gas industry are; adequate security, affordable fuel pricing, consistent funding, reliable gas supply and non-interference in the role of the Nigerian National Petroleum Corporation (NNPC) in the performance of their mandates.

Also, Nigeria’s oil and gas industry needs a surgical operation and there must be holistic approach in order for the industry to attain global standard.

Advance information technology would help in the betterment of the oil and gas business as well as other related fields.



For the oil and gas business in Nigeria to make headway, information technology should be used as a strong backbone to the industry, good marketing skills should be considered and accurate pricing should be properly put in place.



Nigeria National Petroleum Corporation (NNPC)

Shell Nigeria


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