Rising Costs and Falling Output Threaten Survival of Nigeria’s Onshore Oil Producers

Reported by SpringnewsNG Media Limited

Nigeria’s onshore oil producers are facing mounting pressure as rising operational costs and declining output continue to threaten profitability and long-term sustainability.

Industry analysts report that escalating production expenses, coupled with aging infrastructure, pipeline vandalism, and oil theft, have significantly reduced output levels across many onshore oil fields. As a result, companies operating in these regions are struggling to maintain profitability amid shrinking margins.

Several indigenous oil firms have also raised concerns over regulatory bottlenecks, insecurity in host communities, and delayed approvals for critical field operations—all of which contribute to increasing financial burdens and stalled projects.

Experts warn that if the current trend continues, Nigeria risks losing substantial revenue from its onshore oil sector, which has historically played a vital role in the country’s crude production capacity.

In response to these challenges, industry stakeholders are calling on the Federal Government to implement urgent reforms, enhance security in oil-producing regions, and create investor-friendly policies to revitalize onshore operations and attract new investments.