Nigeria’s oil machine creaks 64 years after

Oct. 6, 2024 - Businessday

After 64 years of independence and over six decades of oil exploration, crude oil accounts for less than 10 percent of Nigeria’s GDP but represents about 90 percent of foreign exchange earnings and more than half of government revenue. Despite producing oil in commercial quantities for more than five decades, Nigeria’s oil production has not exceeded, in recent tyimes, the 2.

3 million barrels a day achieved in 1979. It uses Joint Venture Agreements with local and international oil companies to produce in onshore and shallow-water oil wells.

However, it recently paid $2.44bn cash call obligations to multinational oil companies which are its joint-venture partners.

So they found a creative solution by selling their stake to local oil companies...