In 2022, Nigeria’s oil sector was riddled with numerous challenges, most notably the fuel scarcity crises that hit the different parts of the nation and crippled businesses.
In the first half of the year, the country’s oil revenues fell drastically due to a decline in production occasioned by crude oil theft and pipeline vandalism. The situation, exacerbated by the rising crude oil theft, hindered the developmental aspirations of Nigeria, a country heavily dependent on oil revenues to meet its needs.
This year, due to its inability to refine oil locally, Nigeria also spent significant part of its oil revenues on importation of petroleum products and subsidy. The high prices of oil due to the Russia-Ukraine war also increased the landing cost of petrol, increasing subsidy payments.
