Nigeria's oil revenues surge amid global energy crisis despite rampant theft

Tensions in the Middle East and disruptions in the Hormuz Strait have tightened global energy markets, driving up oil prices. Nigeria, Africa’s largest oil producer, has become an unexpected beneficiary, raising daily crude output from about 1.4 million barrels to nearly 1.8 million barrels. The higher output, combined with strong international demand for low‑sulfur crude that is cheaper to refine, has lifted the country’s exports and foreign‑exchange earnings.

A major domestic refinery is operating close to full capacity, supplying gasoline, diesel and kerosene to the region. However, the gains are offset by chronic oil theft, with organized groups siphoning off oil through river channels and damaging infrastructure. Officials estimate that illegal extraction costs the industry billions of dollars each year, limiting the full economic potential of the sector.