9 Highest Oil Producing States in Nigeria (2024)

Nigeria, Africa’s largest oil producer, has relied heavily on petroleum as a primary source of revenue for decades. With vast oil reserves, the country ranks as one of the top oil-producing nations globally. Within Nigeria, several states stand out for their substantial contribution to the nation’s oil production, driving the economy and influencing global energy markets.

As of 2024, Nigeria’s oil industry continues to evolve, with production coming predominantly from the Niger Delta region. The area is blessed with abundant oil reserves, and nine key states account for the bulk of Nigeria’s oil production. In this comprehensive guide, we’ll explore the 9 highest oil-producing states in Nigeria in 2024, along with their oil output, economic significance, and other critical factors.

1. Akwa Ibom State

Akwa Ibom continues to reign as Nigeria’s top oil-producing state, contributing over 31.4% of the nation’s crude oil. The state is located in the coastal area of southern Nigeria, and its vast oil fields are managed by major multinational oil companies, including ExxonMobil, Shell, and Chevron.

The economy of Akwa Ibom is largely dependent on oil, and it receives substantial revenue from the 13% derivation principle, which allocates a portion of oil earnings to oil-producing states. Akwa Ibom’s deepwater offshore fields are some of the most prolific in Nigeria.

Key Oil Fields: Qua Iboe, Idoho, and Ekpe Fields.

2. Delta State

Delta State ranks second among the oil-producing states in Nigeria, contributing 21.6% to the nation’s total oil output. The state is home to the Forcados Terminal, one of Nigeria’s major crude oil export terminals.

Delta has a long history of oil production, with oil exploration dating back to the 1950s. Multinational companies like Shell, Agip, and Chevron are heavily involved in oil operations in Delta State. Its oil wealth has led to rapid industrialization, but it has also faced environmental degradation due to oil spills and gas flaring.

Key Oil Fields: Otorogun, Ughelli, and Forcados Fields.

3. Rivers State

Rivers State is a major oil producer, accounting for 21.4% of Nigeria’s total crude oil production. The state’s capital, Port Harcourt, is known as the hub of Nigeria’s oil industry, hosting the headquarters of many oil companies and regulatory agencies like the Nigerian National Petroleum Corporation (NNPC).

Rivers State’s oil production comes from both onshore and offshore fields. In addition to crude oil, the state produces a significant amount of natural gas. Despite its oil wealth, Rivers State has experienced social unrest and environmental challenges stemming from oil exploration.

Key Oil Fields: Bonny, Bomu, and Cawthorne Channel Fields.

4. Bayelsa State

Bayelsa State, the birthplace of oil production in Nigeria, ranks fourth, contributing 18.1% of the country’s oil. Bayelsa is rich in both oil and natural gas reserves, and its oil fields are predominantly located in the Niger Delta.

Oil exploration in Bayelsa is managed by global companies like Shell, Agip, and Aiteo. Despite its vast oil wealth, Bayelsa remains one of Nigeria’s least developed states, facing challenges of poverty and environmental degradation.

Key Oil Fields: Nembe, Brass, and Oloibiri Fields.

5. Ondo State

Ondo State is Nigeria’s fifth-largest oil-producing state, contributing 3.7% of the country’s crude oil output. Although oil production in Ondo is smaller compared to Akwa Ibom or Delta, the state plays a critical role in Nigeria’s energy sector.

Ondo is unique as it produces oil both onshore and offshore, and it also has significant deposits of bitumen, a crucial natural resource for infrastructure development. Chevron, Total, and ExxonMobil are some of the major companies operating in the state.

Key Oil Fields: Ojumole and Awoye Fields.

6. Imo State

Imo State contributes 1.2% to Nigeria’s total oil production, making it a significant player in the nation’s energy landscape. Located in the southeastern part of the country, Imo State has several oil-producing communities and hosts multinational oil companies like Addax Petroleum and Shell.

Imo’s oil industry has grown steadily over the years, and its Ohaji/Egbema local government area is known for large reserves of crude oil and gas. In recent years, the state has also begun exploring opportunities in renewable energy to diversify its economy.

Key Oil Fields: Ohaji and Izombe Fields.

7. Edo State

Edo State ranks seventh, contributing 1.9% of Nigeria’s total oil production. The state is strategically located in the southern region and has a growing oil industry, alongside other mineral resources like natural gas and limestone.

Edo is home to the Ologbo field, which has been a significant source of crude oil since the 1970s. Shell and Seplat are key players in oil exploration and production in the state. In addition to oil, Edo is known for its abundant natural gas reserves, which have contributed to Nigeria’s power generation capacity.

Key Oil Fields: Ologbo and Gelegele Fields.

8. Abia State

Abia State is another notable oil-producing state, contributing 0.7% to Nigeria’s total oil output. Though its oil production is small compared to Akwa Ibom or Delta, Abia’s crude oil reserves are still a vital part of Nigeria’s overall energy landscape.

Oil production in Abia is centered around the Ukwa West area, and the state is home to several oil-producing companies, including Shell and Total. In recent years, Abia has been exploring opportunities to increase its oil output and attract more investment into its energy sector.

Key Oil Fields: Ukwa West and Obuohia Fields.

9. Lagos State

Lagos State is a newcomer in the oil production sector, contributing 0.5% of Nigeria’s crude oil output. Despite being the country’s economic hub, oil production only began in Lagos in 2016 with the discovery of crude in the Aje Field, located offshore.

Lagos has since made strides in the oil industry, attracting significant investment from indigenous oil companies like Yinka Folawiyo Petroleum. The state’s strategic location, alongside its robust infrastructure and financial markets, has made it an emerging player in Nigeria’s oil production scene.

Key Oil Fields: Aje Field.

Conclusion

The oil and gas industry remains the backbone of Nigeria’s economy, and these nine states play a pivotal role in driving the nation’s energy sector. From Akwa Ibom to Lagos, these states have contributed significantly to Nigeria’s status as an oil giant on the global stage.

While the country’s oil production has created immense wealth, it has also brought challenges such as environmental degradation, social unrest, and economic dependency. Moving forward, Nigeria must strike a balance between harnessing its oil resources and diversifying its economy to ensure sustainable growth.