The ten oil-producing states in Nigeria are Akwa Ibom State, Delta State, Ondo State, Rivers State, Bayelsa State, Ondo State, Kogi State, Lagos State, Edo State, Imo State, and Abia State.
Nigeria is recognized as the largest oil-producing country in Africa and the sixth in the world. The nation is rich in many other natural and mineral resources, but crude oil is her primary source of revenue. Nigeria has 36 states and six geopolitical zones. However, only some of the states in the county produce oil. In this article, we will be taking a close look at the ten leading oil-producing states in Nigeria.
Akwa-Ibom State
- Akwa-Ibom State Region: SouthEast
- Percent of oil: 31.4% – 504,000 BPD
Akwa Ibom State is the Leading Producer of Crude Oil (31.4% – 504,000 BPD). Akwa Ibom is located in the Southeastern region of Nigeria, and Uyo is its capital city. The State comprises 31 Local Government Areas, with its population estimated to be around five million. The primary ethnic groups that dominate this area are Annang, Ibibio, and Oran. Apart from producing oil, the State has natural resources such as zinc, lignite, clay, limestone, salt, and glass sand. One primary natural resource that the State is blessed with is crude oil and gas.
The highest petroleum producer in Nigeria is currently the State of Akwa Ibom, thanks to Mobil Petroleum Nigeria Limited, renamed Exxon/Mobil, which produces crude oil, condensate, and gas offshore. One of the biggest producing facilities in the Niger Delta is the Qua lboe Terminal (QIT), which is located on the coast of Akwa Ibom.
Elf and Addax are two additional oil-producing businesses operating offshore in Akwa Ibom State. The State is reportedly the biggest oil producer in Nigeria, accounting for over 30% of the total oil produced daily, thanks to its government, which prioritized oil production and exploration and has developed a robust infrastructure to support the oil and gas industry.
The Akwa Ibom State government achieves this by creating a favourable environment for investors by offering attractive incentives, including tax breaks and concessional rates for utilities. There is also a skilled workforce available in the State, thanks to the world-class training facilities at the Petroleum Institute of Nigeria (PIN)
2. Delta State
- Region: South
- Percent of oil: 21.56% – 346,000 BPD
Delta State is the second largest oil hub in Nigeria (21.56% – 346,000 BPD). Delta State is a state in Nigeria located in the Southern region of Nigeria and has a population of over 4 million people with 25 Local Government Areas. The capital of Delta State is the city of Asaba. The major ethnic groups occupying the State are the Urhobos, the Isokos, and the Itsekiris.
Delta State has large reserves of natural gas used to produce electricity and thermal energy. The State produces a total of 346,000 barrels per day. According to information gathered, the State has an estimated 2.5 billion barrels of crude oil reserves, making it one of the most important states for Nigeria’s oil sector. Most of the country’s largest oil and gas companies, such as Chevron, Shell, and Total, are in the State.
In Addition, Delta State is blessed with crude oil and has other natural mineral resources such as lignite, kaolin, gypsum, fine sand, marble, and iron ore. Key minor industries in the State are agriculture, as the State has substantial oil palm, yam, and cassava crops, along with fishing and snail farming.
3. Rivers State
- Region: South-South
- Percent of oil: 21.43% – 344,000 BPD
Rivers State is a significant player in the Oil and Gas Industry (21.43% – 344,000 BPD). This oil-producing State’s capital is Port Harcourt, located in Nigeria’s south-south region. It comprises ethnic groups such as Ikwerre, Okrika, Upobo, Ibani, Kalabari, Abua, Oni, and Eleme, among others.
As one of Nigeria’s leading oil and gas-producing states, Rivers State is known to be the wealthiest State with oil in Nigeria. The State contributes a whopping 21% of the total oil production in the country, and it reportedly helps to provide the Nigerian government with enough valuable resources for the growth of the country.
Just like Akwa-Ibom State, Rivers State is also known to have several well-established oil companies such as Shell, Chevron, ExxonMobil, and Agip located in the State. Besides crude oil, Rivers State is also rich in other natural resources like marble, lignite (traces), glass sand, clay, and agricultural produce, such as palm oil, rubber, and timber.
4. Bayelsa State
- Region: South-South
- Percent of oil: 18.07% – 290,000 BPD
Bayelsa State is also a vital player in crude Oil Production (18.07% – 290,000 BPD). The State is reportedly the fourth leading oil-producing State in Nigeria’s Niger- Delta region. It consists of eight Local Government Areas, with the capital city being Yenagoa. Unlike other oil-producing states in Nigeria, Bayelsa is one of the least populated areas, with an estimated population of 2 million people. Among the ethnic groups found in the State are Epi-Atissa, Ogbia, Izon, and Nembe.
According to history, Bayelsa State is among the first sites where crude oil exploration began in Nigeria. Following the start of petroleum research in Nigeria in 1937, crude oil was first discovered at Oloibiri in the Niger Delta in what is now Bayelsa State. This discovery was made by Shell-BP, which at the time was the sole concessionaire.
The State is estimated to produce about 20 percent of Nigeria’s total crude oil output, and most of the produce comes from the Nembe Creek and Oloibiri fields offshore, which have increased production by over 300%. Besides oil, the State also has reserves of natural resources such as zinc, lignite, gypsum, manganese, limestone clay, and uranium.
Additionally, the State has seen huge investments into floating production, storage, and offloading (FPSO) vessels in recent years, with four now in operation offshore. FPSOs are valuable assets to energy companies as these vessels enable them to extract and store large volumes of crude oil and gas safely before being shipped to shore for processing.
5. Ondo State
- Region: Southwest
- Percent of oil: 3.74% – 60,000 BPD
Another crude oil-producing state in Nigeria is Ondo State ( 3.74% – 60,000 BPD). The State is located in the southwestern part of Nigeria and it shares borders with Delta State and Edo State. Ondo State has 18 Local Government Areas, and its capital is Akure. Among the ethnic groups within the State’s territory are Okitipupa, Owo, Akoko, Akure, Ondo, and Ilaje.
Ondo State is both an exploration and development hotspot. The State was created on the 3rd of February 1976, and since 1981, when oil was first discovered there, it has produced over 1.37 billion barrels of oil and 38 billion cubic meters of gas. The recent finding of a substantial new oil field by Shell in 2019, the Owo-1-/OWP-2 exploratory wells located onshore and offshore, is one of Ondo’s most prominent triumphs. The Owo field is believed to hold more than 650 million barrels of oil equivalent, making it one of Nigeria’s most significant finds in decades.
Because of the rising exploration efforts, Ondo has become increasingly appealing to oil majors; the number of rigs in Ondo more than doubled between 2018 and 2020. Apart from oil deposits, you can also find reserves of coal, bitumen, dimension stones, gemstones, glass sand, granite, gypsum, feldspar, and clay.
6. Kogi State
- Region: Middle Belt
- Percent of oil: 2.74% — 55,000 BPD
Kogi State is a rising star in oil production, with an output of 2.74% — 55,000 BPD (Barrel Per Day). The State is located in the middle belt region of Nigeria, covering a total land area of about 28,794 square kilometers. Kogi State became the first northern State to become an oil producer after the Ibaji oil well was discovered in the State. The state government received its first 13% derivation fund from the federal as an oil-producing state.
In recent times, there has been an increase in exploration activities in the State by multinational companies due to its vast reserves of oil and gas. This has resulted in an increase in production activities as well as job creation for locals. Kogi State is now one of the leading oil-producing states and is making strong moves to become one of the most important producers of crude oil in Nigeria.
Apart from crude oil, Kogi State also has some significant resources like limestone, coal, and clay, which are found in abundance. The State is also home to many crude oil fields and wells, including Aje Field, Kashimbila Field, and Obele Field.
7. Lagos State
- Region: Southwest
- Percent of oil: 2.64% – 40,000 BPD
Lagos state is one of Nigeria’s highest oil producers with an output of 2.64% – 40,000 BPD. The State is located in the southwestern region of Nigeria, and its capital is Ikeja. Among the ethnic groups found in Lagos are Igbos, Ibibio, Hausa, and Yoruba, which is the dominant tribe
It is one of the fast-growing cities where oil was recently discovered and is densely populated with over 20 million residents. The capital of the State is Ikeja. Lagos State was the former capital of Nigeria and is today home to the country’s busiest seaport. It is also one of the leading oil-producing states in Nigeria, with an estimated production rate of 40,000 barrels per day. The State has traditionally been a significant contributor to the Nigerian economy and has since increased investment in infrastructure and public services over the past several years.
It is also home to many oil refineries, such as Chevron and Total, as well as other major industrial companies, like Mobil and Conoil. Lagos State does not only have abundant crude oil deposits but is also rich in other minerals such as bitumen, clay, and glass sand.
8. Edo State
- Region: South-South
- Percent of oil: 2.06% – 33,000 BPD
Edo State is located in the South-South region of Nigeria and is an essential source of light crude oil with an output of 2.06% – 33,000 BPD. The State is estimated to have a population of 3.5 million people, and its capital city is Benin. The State comprises other ethnic groups, such as (Binis), Esan, and Afernai (Owan/Etsako), with Akoko Edo ethnic groups.
Nigerian production of light crude oil is only found in Edo State. According to the Nigerian National Petroleum Corporation, it is the sixth-largest oil-producing State in the nation, expected to produce 33,000 barrels per day in 2021.
The State of Edo produces light crude oil and is home to several expansive field activities, including the OMLs 52, 53, 55, and 56 of Chevron. In the shallow waters off the coast of Benin City, it also produces a sizable amount of oil. The projected global crude reserves are four billion barrels, with a daily production capacity of more than 500,000 barrels. Besides crude oil, you can find deposits of dolomite, phosphate, marble, limestone, gold, lignite, glass sand, clay, iron ore, and bitumen.
9. Imo State
- Region: Southeast
- Percent of oil: 1.06 % -17,000 BPD
Imo State is another oil-producing state in Nigeria with an output of 1.06 % -17,000 BPD( Barrel Per Day). The State is located in the southeastern region and includes 27 Local Government Areas. The capital of Imo state is Owerri. Other natural resources in the area are zinc, salt, phosphate, gypsum, marcasite, lignite, and limestone.
The first oil well was struck in Iho Dimeze, Imo state in the 1950s, and since then, the State has been on exploration and exploitation of crude oil. The areas known for oil deposits in the State are Egbema, Oguta, and Ohaji. The State reportedly has abundant gas deposits fully explored now in Ohaji/Egbema local government in a place called Assa.
Imo State has recently made deepwater exploration prospects available, which have been very profitable. For instance, the 2020 discovery of the $2 billion OML130 Orashi Field is thought to have the equivalent of 500 million barrels of oil. The success of deepwater drilling in this area is largely attributable to the State’s location between established oil-producing states like Akwa Ibom and Delta and its location on the African coast.
Imo State also gains from being close to the Anambra Basin, a geological formation that is home to several significant oil resources. The State is expected to have a production capability of 17,000 barrels per day. This is an astonishing amount, especially considering that many anticipate it will more than double in the next years. As a result, it appears that Imo State will continue to play a significant part in Nigeria’s overall oil output in the future.
10. Abia State
- Region: Southeast
- Percent of oil: 0.68% – 11,000 BPD
Abia State is making its mark as an oil-producing hub with an output of 0.68% – 11,000 BPD (Barrel Per Day). Abia State is another state located in the southeastern region of Nigeria that is an oil-producing state besides Imo State. It comprises 17 Local Government Areas with an estimated population of about 3 million people. Its capital city is Umuahia.
The State has 24 oilfields scattered over five local government units, which has allowed it to profit from the business. According to information, Abia State has an average production rate of 11,000 barrels a day and reserves of 3.2 billion barrels. This State has had a quick rise in its economic development due to its exceptional achievement in the oil sector.
Abia State’s availability of oil also makes it a desirable alternative for shrewd investors seeking profitable chances. In addition, the State’s advantageous position makes it an ideal candidate for additional investment, providing it a competitive advantage in the area. If you’re considering investing in this business, Abia State should be firmly on your radar as a prominent player in Nigeria’s oil sector.
Besides crude oil, the State is blessed with other mineral resources such as zinc, gold, limestone, and salt.