Nigeria’s Oil Revenue Surges By 83% – NBS Report Says

A recent publication by the National Bureau of Statistics (NBS) has shown that Nigeria’s crude oil revenue increased by 83.23 per cent to N8.54 trillion in the third quarter of 2023.

This is as Nigeria’s foreign trade in the period under review experienced a rise by 53.16 per cent year-on-year to N 18.80tn, Naija News understands.

In the previous year’s third quarter, only N4.66tn was recorded in crude oil sales.

Factors such as increased trade activity contributed to a 60.78 per cent increase in total exports to N10,35 trillion in the third quarter of 2023, the NBS report on foreign trade in goods (FTAG) revealed.

“Nigeria’s total merchandise trade stood at N18.80tn in Q3, 2023. The value indicates an increase of 54.62 per cent over the amount recorded in Q2, 2023 as well as by 53.16 per cent when compared to the value recorded in Q3 2022.

“Total exports accounted for 55.02 per cent of total trade in the reviewed quarter with a value of N10.35tn, showing an increase of 60.78 per cent and 74.36 per cent over the value recorded in the preceding and corresponding quarters, respectively.

“Exports trade in the third quarter of 2023 was dominated by crude oil exports valued at ₦8,535.61 billion representing 82.50 per cent of total exports while the value of non-crude oil exports stood at N1.81tn accounting for 17.50 per cent of total exports; of which non-oil products contributed N677.57bn or 6.55 per cent of total exports.

“On the other hand, the share of total imports accounted for 44.98 per cent of total trade in the third quarter of 2023, with the value of imports amounting to N8.46tn in Q3, 2023. This value indicates an increase of 47.70 per cent and 33.33 per cent, respectively over the value (N5.73tn) and (N6.34tn) recorded in the preceding and the corresponding quarters of 2022,” The PUNCH quoted NBS report saying.

The report revealed further that Nigeria’s trade balance stood at N1.89tn and that Spain (N1.27tn), India (N1.02tn), the Netherlands (N988.66bn), Indonesia (N758.59bn), and France (N720.45) recorded the highest exports from Nigeria.

Altogether, exports to the top five countries amounted to 45.98 percent of the total value of exports, Naija News learned.

Nigeria is said to have imported most from China (N1.97tn), Belgium (N996.65bn), India (N802.07bn), Malta (N561.37bn), and the United States of America (N502.92bn), which totalled N4.84tn, representing a share of 57.18 per cent of total imports.

Commenting on exported goods in the quarter, the statistics body said: “However, analysis by traded products shows that the largest export value in the third quarter of 2023 remained ‘Petroleum oils and oils obtained from bituminous minerals, crude’ with N8.54tn representing 82.50 per cent this was followed by ‘Natural gas, liquefied’ with N1.02tn accounting for 9.82 per cent, and ‘Urea, whether or not in aqueous solution’ with N109.68bn or 1.06 per cent of total exports.”

On imports, it added, “The commodities with the largest values of imported products were ‘Motor Spirit Ordinary’ valued at N1.92tn or 22.71 per cent, ‘Gas oil’ with N736.66bn or 8.71 per cent and ‘Durum wheat (not in seeds)’ with value amounting to N331.76bn or 3.92 per cent of total imports.”

In the 2024 fiscal framework update, the Federal Government reported that oil production was around 1.33+ Mbar per day, which is lower than the 1.69 Mbar per day target set for 2023. Oil production in Nigeria has been facing a number of challenges.

According to a report by the World Bank, oil production in Nigeria remains low. A report by The PUNCH reported that the country’s crude oil production increased to 1.35 Mbar per day as of September 2023.

Checks revealed that the country’s oil production recently rose to about 1.7 million barrels per day.

In another report earlier, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, was quoted to have said “A substantial part of our forex comes from the oil sector. So, my ambition is to see how I can lead the sector to increase production and get more revenue to fund strategic national projects.

“We are already increasing production steadily. As of August, it was about 1.1mbpd, but as of today it has increased to between 1.3 and 1.4mbpd exclusive of condensates, if you include condensates, it will be about 1.7mbpd,” the PUNCH quoted the oil minister.

However, the rise in exports could be tied to the recent devaluation of the naira. Earlier in the year, JP Morgan said of the policy, “Of course, a weaker exchange rate means the government would receive higher naira revenues from oil and gas exports.”