Economic and Financial Review


Central Bank of Nigeria


Petroleum Industry, Nigeria


This paper examines developments in the Nigerian petroleum industry in view of its prominent role in the economy and notes outstanding issues and other relevant policy implications. The paper also discusses the industry's organizational and operational structure and assesses its performance in terms of production, local consumption and exports of crude oil and refined products as well as oil revenue. Major findings are that although the sub-sector continues to account for the bulk of federally-collected revenue, the growth in crude oil output, average crude export volume as well as refined petroleum products consumption have been declining, while the performance of the refineries has been sub-optimal. Identified contributory outstanding constraints include public control of the industry and lack of autonomy for the NNPC; inefficiency in production and distribution; cash .flow problems and low level of investment. The paper suggests the privatisation of the refineries, depots and pipeline operations as well as the design of appropriate incentives to promote greater s:vnergy between multinational and indigenous operators.

Author Bio

Dr. M. O. Ojo is the Director of Research and B. S. Adebusuyi is a Senior Economist, Research Department, Central Bank of Nigeria

Publication Title

CBN Economic and Financial Review





Recommended Citation

Ojo, M. O. & Adebusuyi, B. S. (1996). The State of the Nigerian Petroleum Industry: Performance, Problems and Outstanding Issues. CBN Economic and Financial Review. 34(3), 647-674.



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