Nigeria is unable to account for exactly how much oil it produces daily

The Nigerian National Petroleum Corporation has been called out on its inability to have proper measuring meters to account for daily oil production in the country.

Expressing displeasure about the situation, a Nigerian lawmaker, Sen. Stella Oduah, stated that “Nigeria National Petroleum Corporation has not been able to procure the device to adequately keep an inventory of oil production in the country, many decades after it commenced”.

The importance of inventory is such that, it provides a very interesting, instructive and detailed perspective of how NNPC manages and optimizes cost savings, supply chain and illuminates the practices that separates areas with high performers and those that have room for improvement.

In today’s economic climate, most leaders recognize that efficient inventory management will result to cost savings and is a barometer of industrial growth. What the members of the public do with the information and how they respond is quite important, as even a small improvement in inventory management  efficiency and effectiveness can mean so much to a Nation’s economy.

According to a list of countries by oil production, as compiled from the U.S Energy Information Administration data base for calendar year 2016, Nigeria is the largest oil producer in Africa, 13th largest oil producer in the world; the 8th largest exporter of petroleum, and has the 10th largest proven reserves. Petroleum plays a large role in the Nigerian economy, accounting for 40% of GDP and 80% of Government earnings.

Noting that the product forms the basis of the country’s budgeting, the former minister of Aviation said “crude is the mainstay of the country’s economy and it is important to get an adequate system to ensure accountability and transparency to the Nigerian people”.

Crude Oil Production in Nigeria averaged 1892.30 BBL/D/1K from 1973 until 2017. With a record low of 675 BBL/D/1K in 1983, it reached an all-time high of 2574 BBL/D/1K in 2005. Crude Oil Production in Nigeria increased to 1663 BBL/D/1K in June from 1494 BBL/D/1K in May of 2017.

Oil represents one resource with a major impact on economic and social development, being actually, at least for the moment, one important energy source. Products resulting from the processing of crude oil play a key role in companies’ activity and thus in people’s lives, being the most traded activity in the world. Like any field of social and economic life, aspects related to oil production must be measured, hence the need to ensure the existence of a proper management system.

Over the years, the Nigerian oil sector has said to have been poised with various challenges such has refineries poor condition and insufficient measuring equipment. In order to curb various challenges in the Nigerian oil sector, the Petroleum Industry Bill was passed by the Nigerian Senate, 17years after the process started.

The bill is expected to promote transparency and accountability in the administration of petroleum resources, as well as, foster a conducive business environment for petroleum industry operations in the Country.

It was reported in a local newspaper that the bill will aid the reduction to the barest minimum, corrupt practices in the oil and gas sector and inefficiencies link unequipped production will be extinct.

The Nigerian Senate President, Bukola Saraki, has assured “the bill is not only for Nigerian citizens but also for those who are looking to invest in the oil sector of the Country”.

He added that “the bill will stimulate the oil and gas industry and reduce corruption and insufficiency in the oil and gas sector of the country”.

In another newspaper, it was published that the bill would not only go a long way in finding a lasting solution to the metering problem in the sector, but also solve other problems being faced in the industry.