Nigeria Reports 80 Percent Oil Production Surge Amid Financial Misconduct Allegations

The Nigerian government has reported an 80% increase in crude oil production over the past three years, reaching 1.824 million barrels per day. Minister of State for Petroleum Resources Heineken Lokpobiri attributed this growth to increased investments and reforms under President Bola Tinubu's administration, noting that production was below one million barrels when the current government took office.

Despite the positive developments, concerns have been raised about financial irregularities within the oil sector. The Socio-Economic Rights and Accountability Project (SERAP) urged President Tinubu to investigate allegations of diverted or unremitted funds totaling over N94.4 billion by the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Atiku Abubakar, presidential candidate of the African Democratic Congress (ADC), also called for transparency regarding the use of proceeds from subsidy removal and the N11.2 trillion owed to the Nigerian National Petroleum Company Limited (NNPCL).

Lokpobiri defended the government's handling of the subsidy removal proceeds, stating that the funds were shared among federal, state, and local governments. He emphasized the importance of citizens holding their state governments accountable for the allocation of these resources. The minister also highlighted the increase in active rigs from fewer than 10 to over 70, signaling renewed activity and investment in the oil and gas sector.

SERAP's call for investigation was based on the 2024 Annual Report of the Auditor-General of the Federation, which reported failures to remit revenues and penalties related to petroleum products and gas flaring. Atiku demanded a full accounting of the N11.2 trillion claimed by NNPCL, questioning the allocation of funds for security and pipeline protection.