Another African Country Overtakes Nigeria as List of 10 Countries With Largest Oil Reserves Emerges

• Nigeria, a leading oil-producing country in the world, has been toppled by Libya, recovering economy on the continent
• Nigeria has reported increased oil production from 1.28 million barrels per day to 1.7 million barrels
• Oil export accounts for 80% of Nigeria’s revenue earnings and is the crux of the country’s budgeting

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian authorities recently announced an increase in oil production from 1.28 million barrels per day to 1.7 million barrels, making Africa’s largest oil producer.

While Nigeria’s oil production has increased significantly over the years as it battles to contain oil theft and low output, it has lost its position as the country with the largest oil reserves in Africa.

Most economies still rely on fossil fuels

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Crude oil production is critical to the economic well-being of Nigeria and other oil-producing countries in Africa.

Energy plays a significant role in boosting countries' economies and improving African lives.

Experts say access to energy is essential for a country’s success as most of the world’s energy needs come from fossil fuels such as natural gas, coal, and oil.

While Africa’s oil resources offer immense opportunities, they also present challenges for exporting countries, as high oil prices can be a boon.

However, oil price volatility can also cause economic instability in countries like Nigeria, which relies heavily on crude exports.

Nigeria’s earnings are dependent on crude oil

According to reports, crude oil exports make up 80% of Nigeria’s earnings.

Also, importing countries on the continent face enormous challenges when oil prices increase.

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Higher oil prices increase the cost of energy, strain national budgets, and could lead to inflation, making it challenging for these countries to achieve economic stability and growth. 

According to the Global Firepower report, about 10 African countries have proven oil reserves.

How oil reserves are determined

The report said proven oil reserves are determined via geological and engineering processes to produce an estimated oil stock on the ground.

The reserves show a country's commercially available oil reserves based on recognised reservoirs.

Top 10 countries with largest oil reservices in Africa

Libya: 50bn bbl

Libya is ranked 79 out of 145 countries considered for the annual GFP review in 2024. The nation holds a PwrIndx* score of 1.4449 (a score of 0.0000 is considered 'perfect'). This entry was last reviewed on 01/09/2024.

Nigeria: 37bn bbl

For 2024, Nigeria is ranked 39 of 145 out of the countries considered for the annual GFP review. The nation holds a PwrIndx* score of 0.5619 (a score of 0.0000 is considered 'perfect'). This entry was last reviewed on 01/09/2024.

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Algeria: 12.2bn bbl

For 2024, Algeria is ranked 26 of 145 out of the countries considered for the annual GFP review. The nation holds a PwrIndx* score of 0.3589 (a score of 0.0000 is considered 'perfect'). This entry was last reviewed on 01/09/2024.

Angola: 7.78bn bbl

For 2024, Angola is ranked 55 out of 145 countries considered for the annual GFP review. The nation holds a PwrIndx* score of 0.8702 (a score of 0.0000 is considered 'perfect'). This entry was last reviewed on 01/09/2024.

Sudan: 5b bbl

Sudan is ranked 76 out of 145 countries considered for the annual GFP review in 2024. The nation holds a PwrIndx* score of 1.4119 (a score of 0.0000 is considered 'perfect'). This entry was last reviewed on 01/09/2024.

South Sudan: 7.750 bbl

For 2024, South Sudan is ranked 119 out of 145 countries considered for the annual GFP review. The nation holds a PwrIndx* score of 2.4376 (a score of 0.0000 is considered 'perfect'). This entry was last reviewed on 01/09/2024.

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Egypt: 3.3bn bbl

The GFP index denotes Egypt as a Top 15 global military power.

Egypt is ranked 15th out of 145 countries considered for the annual GFP review in 2024. The nation holds a PwrIndx* score of 0.2283 (a score of 0.0000 is considered 'perfect'). This entry was last reviewed on 01/09/2024.

DRC: 2.882bn bbl

For 2024, the Republic of the Congo is ranked 122 out of 145 countries considered for the annual GFP review. The nation holds a PwrIndx score of 2.7282 (a score of 0.0000 is considered 'perfect'). This entry was last reviewed on 01/09/2024.

Uganda: 2.5bn bbl

For 2024, Uganda is ranked 114 of 145 out of the countries considered for the annual GFP review. The nation holds a PwrIndx* score of 2.2405 (a score of 0.0000 is considered 'perfect'). This entry was last reviewed on 01/09/2024.

Gabon: 2bn bbl

For 2024, Gabon is ranked 132 out of 145 countries considered for the annual GFP review. The nation holds a PwrIndx* score of 2.9517 (a score of 0.0000 is considered 'perfect'). This entry was last reviewed on 01/06/2024.

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Libya denies talks with Dangote Refinery for crude oil supply

Legit.ng earlier reported that The National Oil of Libya (NOC) has denied engaging in negotiations to supply crude oil to any local refinery in Nigeria.

The oil company disclosed this in a statement on its X account, stressing that it has no agreements to export oil to Nigeria.

Libya, a significant oil producer in Africa, was identified by the Dangote Refinery management as one of the African countries from which the refinery plans to import crude oil amid a dispute with NNPC and NMDPRA.

Source: Legit.ng