Estimates from data released by the National Oil Spill Detection and Response Agency (NOSDRA) indicate that Nigeria incurred losses of approximately N335 million due to oil spills between January and August 2023.

During this period, NOSDRA recorded a total of 168 incidents of oil spills, resulting in a loss of 5,520 barrels of crude oil from oil companies operating in the country.

Based on the average crude oil price during this period of $82 per barrel and the Central Bank of Nigeria’s exchange rate of N740/$1, the estimated financial loss attributed to oil spills in Nigeria amounted to N335 million.

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The spills were reported across the facilities of 23 oil firms, with Shell Petroleum Development Company accounting for the highest spill volume, which amounted to 4,340 barrels of crude oil in 43 spill incidents, representing 78.62% of the total crude oil spilled during the eight-month period.

Heritage Energy Operational Service Limited followed with 24 incidents resulting in 323.20 barrels of crude oil spilled, while Nigerian Agip Oil Company reported 38 incidents leading to a spillage of 248.86 barrels of crude oil.

Rivers State was the most affected by oil spillage, with 2,780 barrels of crude oil spilled in 67 incidents, followed by Delta State with 2,623 barrels spilled in 76 incidents.

NOSDRA also indicated that the majority of the spill incidents occurred from crude oil pipelines, resulting in 3,113 barrels of crude oil spilled in 114 incidents.

Theft and sabotage were responsible for 92.78% of the oil spills, amounting to 5,122 barrels, while corrosion contributed to 228.22 barrels spilled in 16 incidents.

Oil spill incidents have posed ongoing challenges to oil companies and have resulted in significant economic losses for the country.