Crude Oil production surge boosts Nigeria’s earnings to N15.4trn
BY MOTOLANI OSENI
A rise in crude oil production has significantly increased revenue generation for the Nigerian Federal Government in the first quarter of this year to N15.4 trillion.
According to the National Bureau of Statistics (NBS), Nigeria’s crude oil production saw a recovery in Q1 2024, boosting export potential by 50.2 per cent to N15.4 trillion.
This increase is a substantial rise from N10.3 trillion in Q4 2023 and a significant improvement from N8.5 trillion in Q3 2023 and N5 trillion in Q2 2023.
The data revealed that in Q1 2023, Nigeria exported crude oil worth N4.9 trillion, much lower than the revenue recorded in Q1 2024. In January alone, the country sold N5.2 trillion worth of oil, exceeding the total export value for Q1 2023. This figure increased to N5.4 trillion in February, before a slight dip to N4.8 trillion in March 2024.
Crude oil exports in Q1 2024 were valued at N15,486.63 billion, marking a 50.20 per cent rise from N10,310.70 billion in Q4 2023 and a 200.79 per cent increase from N5,148.58 billion in Q1 2023.
Other oil product exports in Q1 2024 stood at N1,901.88 billion, up 47.70 per cent from N1,287.65 billion in Q4 2023 and a 177.17 per cent increase from N686.17 billion in Q1 2023.
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Nigeria has struggled to meet its Organization of Petroleum Exporting Countries (OPEC) production quota over the last four years but began a slow recovery in late 2024. However, production in March dropped significantly to 1.23 million barrels per day due to issues with the Trans-Niger Pipeline (TNP) and maintenance activities by some oil companies.
Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, attributed the previous month’s low production to these issues but emphasized that the Federal Government is implementing policies to maximize the use of all available wells across the country. These efforts aim to generate revenue to meet budget expenses and stabilize the foreign exchange market.
In Q1 2024, Nigeria’s top trading export partners included France, Spain, the Netherlands, India, and the United States of America. Key exported commodities were crude oil, liquefied natural gas, sesamum seeds, and urea. Solid mineral exports were valued at N63.41 billion, marking a 76.77 per cent increase from N35.87 billion in Q4 2023 and a 143.69 per cent rise from N26.02 billion in Q1 2023.
Exports accounted for 60.25 per cent of total trade in the reviewed quarter, valued at N19,167.36 billion, a 51.00 per cent increase from Q4 2023 and a 195.47 per cent rise from Q1 2023. Crude oil exports represented 80.80 per cent of total exports, valued at N15,486.63 billion, while non-crude oil exports stood at N3,680.73 billion, accounting for 19.20 per cent of total exports.
China ranked highest among Nigeria’s import partners in Q1 2024, followed by India, the United States of America, Belgium, and the Netherlands. The most traded commodities included motor spirit (ordinary), other liquefied petroleum gases, and gaseous hydrocarbons. Total imports in Q1 2024 were valued at N12,643.23 billion, accounting for 39.75 per cent of total trade.
The Standard International Trade Classification revealed that the top-ranked import group was “mineral fuels” at N4,436.59 billion, representing 35.09 per cent of total imports. This was followed by machinery and transport equipment at N3,170.35 billion (25.08 per cent of total imports) and chemicals & related products at N1,786.43 billion (14.13 per cent of total imports).
In Q1 2024, Nigeria’s export values to African countries stood at N2,236.82 billion, while imports amounted to N401.83 billion.
Exports mainly targeted South Africa (N957.06 billion), Ivory Coast (N744.59 billion), Senegal Republic (N361.29 billion), Benin Republic (N55.67 billion), and Togo (N38.01 billion), representing 96.41 per cent of exports to Africa.
Major importing partners within Africa included South Africa with goods valued at N97.33 billion, Ivory Coast with N51.41 billion, Togo with N40.86 billion, Egypt with N40.23 billion, and Morocco with N30.07 billion.
