Oil exports make up 82.50% of Nigeria’s foreign trade in Q3/2023. This is according to the Foreign Trade Statistics Report from the National Bureau of Statistics (NBS).
During the third quarter of 2023, the majority of Nigeria’s export trade was dominated by crude oil exports. These crude oil exports were valued at ₦8,535.61 billion, making up about 82.50% of the total exports during that period.
Specifically focusing on crude oil exports in Q3/2023, they stood at ₦8,535.61 billion, indicating a substantial increase of 70.52% when compared to the value recorded in Q2, 2023 (₦5,005.71 billion).
Moreover, this figure marked an 83.23% increase when compared to the same period in 2022, which was ₦4,658.30 billion.
Moving to other sectors, the report indicated that the export value of energy goods in Q3, 2023 was ₦26.57 billion, showcasing a significant increase of 66.51% compared to the value recorded in Q2, 2023 (₦15.96 billion). Similarly, this value saw an 85.10% increase when compared to Q3, 2022 (₦14.36 billion).
Also, the value of solid minerals exports in Q3, 2023 was estimated at ₦41.61 billion, showing an increase of 22.07% over the value recorded in Q2, 2023 (₦34.09 billion). Compared to the corresponding quarter in 2022, this figure represented an 85.19% increase from ₦22.47 billion.
The implication
Revenue deficit. Just like many countries on the continent, Nigeria faces less revenue if it keeps exporting its crude oil in its raw state only to import petroleum products from countries in Europe that have stable refining capacity. The oil and gas sector is the largest contributor to government revenues and accounts for the bulk of Nigeria’s exports.
However, the country has been unable to benefit from increasing global prices as a result of several factors including theft, vandalism, and insecurity in supply chains.
Oil revenues remain Nigeria’s main source of foreign exchange and the continuous oil export hampers forex availability and until this changes the country will keep experiencing volatility in that regard.
There are plans in place to change this situation. The Nigerian National Petroleum Company Limited (NNPCL) has assured Nigerians that by this month (December 2023), the 53-year-old Port Harcourt refinery which has been more dead than alive, will be fully rehabilitated and active.
The company also assures that by the end of 2024, both Kaduna and Warri refineries will also be active, and the country will become a net exporter of petroleum products as it will no longer be exporting crude oil only to receive petroleum products from Europe, increasing cost for end consumers.
Also, the Dangote refinery management team has said it will start refining activities this month as well, this is in addition to output from modular refineries like Waltersmith Petroleum Refinery which has been active since 2020 and is looking to expand by 2025.
What you should know
The value of non-crude oil exports stood at ₦1,810.99 billion accounting for 17.50% of total exports; of which non-oil products contributed ₦677.57 billion or 6.55% of total exports.
