The Federal Government’s ability to meet its oil production target set in the 2025 national budget may have been affected, as a protest by the Itsekiri community in the Niger Delta has halted operations at the Escravos oil production facility in Ogidigben, which produces 28,000 barrels per day.
The protest is in response to what the community deems an unjust proposed ward delineation by the Independent National Electoral Commission. The protesters have also warned that additional shutdowns of oil facilities could occur in the coming days.
This development comes at a time when Nigeria is struggling to meet its daily oil production target of 2.06 million barrels per day for 2025.
The country is also facing a decline in oil revenue due to falling crude oil prices, which have been impacted by sweeping trade tariffs imposed by the United States. Last week, the Trump administration introduced tariffs ranging from 10% to 65% on various countries, including Nigeria, which faces a 14% tariff on its exports to the U.S.
Finance Minister Wale Edun stated that the Federal Government plans to increase non-oil revenue to mitigate the effects of the tariffs. He also acknowledged that Nigeria’s oil revenue is being impacted.
However, he assured that the Economic Management Team (EMT) will convene to evaluate the potential impact of the 14% tariff on Nigerian exports to the United States.
“It’s the price effect, the oil price effect that may affect Nigeria. It is the job and responsibility of the economic management team of President Bola Ahmed Tinubu, among others, to consider various scenarios that could unfold,” he said at a Ministry of Finance conference in Abuja on Monday.
Nigeria’s current oil production stands at approximately 1.75 million barrels per day, while OPEC’s quota for the country is 1.5 million barrels per day.
In a video shared by our correspondent, the protesters were seen singing and chanting outside the facility, while armed security personnel barricaded them from accessing the site.
Further details of the protest are expected soon.
