Title: Crude oil disruptions in Nigeria increase as a result of militant attacks - Today in Energy - U.S. Energy Information Administration (EIA)
Headings: Crude oil disruptions in Nigeria increase as a result of militant attacks
Crude oil disruptions in Nigeria increase as a result of militant attacks
Content: Significant disruptions in oil production resulting from NDA attacks, combined with relatively low crude oil prices, have had a significant effect on Nigeria's economy. According to Nigeria's Ministry of Budget and National Planning, Nigeria's oil sector provides 70% of government revenue and 95% of export revenue. The NDA attacks are largely in response to President Buhari's cutback on amnesty payments and termination of security contracts to former militants. The group threatens to continue the attacks until the Nigerian government meets its demands, some of which include greater regional control of local oil production, continuation of the amnesty program, and compensation to Niger Deltan communities polluted by oil exploration and production. The Nigerian government announced in June that it had agreed to a ceasefire with the NDA, but the group refutes that statement and has conducted numerous attacks since then. More recently, the Nigerian government announced it will resume payouts to the militants under the amnesty program. However, because payouts are just one of the NDA's many demands, crude oil production stoppages are likely to continue until the Nigerian government and the NDA can reach a comprehensive agreement. EIA expects Nigerian oil production to remain depressed through 2017 as a result of militant attacks. More information about Nigeria's oil production and disruptions is available in EIA's Country Analysis Brief. Principal contributor: