Unrest in Niger Delta may destroy oil industry of the region

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Security challenges in the Niger Delta region, where oil production is accumulated and where production facilities have been hit by militants, may seriously damage the Nigerian economy, Platts.com reports citing a statement published by the state-owned Nigerian National Petroleum Corp (NNPC). The company supposes that the only way out is to urgently check the unrest.

"If the current situation [in the delta] remains unchecked, it could lead to the crippling of the Corporation and the nation's oil and gas sector, the mainstay of the Nigerian economy," NNPC said in a statement.

According to the National Bureau of Statistics data released on August 31, Nigeira’s output has already fallen to 1.69 barrels per day in the second quarter of this year due to renewed militancy in the Niger Delta.

"Insecurity is threatening production and damaging the Niger Delta environment. There is the urgent need for government and security agencies to refocus as well as engage the various host communities ... toward finding a lasting solution to the present unrest," NNPC said.