Nigeria’s persistent hydrocarbon metering and calibration deficiencies responsible for billions of dollars in lost state revenues will take centre stage at the 2026 Nigeria Hydrocarbon Measurement Conference (NiHMEC), scheduled for October 4 to 8 at the Federal Palace Hotel, Lagos.
This is as data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) highlights that approximately 40 per cent of apparent crude oil losses stem directly from measurement inaccuracies and faulty metering infrastructure, rather than physical theft.
The commission’s estimate indicated that resolving these technical discrepancies could salvage up to $1 billion annually for the nation’s coffers.
Speaking ahead of the summit, Sunday Kanshio, managing partner of Fleissen Events and coordinator of the NiHMEC Technical Advisory Committee, emphasised that precise measurement is central to revenue protection and operational efficiency across the energy value chain.
“Accurate measurement of oil and gas is critical to maximizing production, ensuring proper accounting, and protecting government revenue,” Kanshio said. “Without measurement, the industry is essentially operating blind.”
He noted that fiscal metering at export terminals remains the most critical node in the system, as it forms the baseline for calculating state royalties and taxes. Proper calibration is equally vital upstream, where flow stations process commingled production from multiple fields, requiring accurate field-level allocation to satisfy tax compliance standards.
Kanshio added that the reliability of these measurement systems hinges on two primary variables: the sophistication of the technology deployed and the technical competence of the personnel operating it.
He said, “In all these phases, measurement is the most critical part. Without measurements of oil and gas quantities, it is almost like we are working blind.
“We need to know the quantity, and that requires measurement. The next phase is when the oil flows to the flow station if it is onshore or to an FPSO.”
“The annual NiHMEC provides a platform for industry stakeholders to review progress, identify emerging challenges and develop solutions for improving hydrocarbon measurement practices.”
NiHMEC 2026 aims to gather key industry operators, regulators, and technology providers to assess technical progress, address structural bottlenecks, and establish standardised measurement frameworks across the sector.
