Figures cited by The Nation show that Nigeria has missed a staggering N28.3 trillion in potential annual revenue by failing to capitalize on the global oil price spike triggered by the ongoing conflict in Iran. Dele Oye, Chairman of the Alliance for Economic Research and Ethics (AERE), pointed out that while Brent crude has soared past $100 per barrel, Nigeria’s production remains significantly below its budget targets.
The country is currently pumping approximately 1.46 million barrels per day, missing its 1.84 million barrel target by 380,000 barrels daily. This production gap, coupled with existing debt pledges and refinery commitments, means the “windfall” remains largely a mirage for the federal treasury.
Vanguard reported that “low production and subsidy drains” continue to hamper revenue, while The Punch quoted Oye saying, “The paradox is painful: oil is expensive, but our pockets remain empty.” Industry experts at BusinessDay added that “infrastructure decay in the Niger Delta” is the primary bottleneck.
Echotitbits take: High oil prices are a curse if you can’t get the product out of the ground. Until the government solves the dual crises of pipeline vandalism and aging infrastructure, Nigeria will continue to watch its neighbors feast while it remains hungry.
Source: Vanguard – vanguardngr.com/2026/03/nigeria-loses-₦28trn-oil-windfall-to-low-output-subsidy-burden-oye/, March 31, 2026
Photo credit: The Guardian
