Despite converted efforts to diversify Nigeria’s economy, the country remains heavily reliant on crude oil, with over 80 per cent of exports dominated by this single product.
This mono-product dependency has led to significant challenges, including a decline in government revenue due to volatile global oil prices and limited diversification efforts. The country’s overreliance on oil has hindered economic growth and stability, with implications such as job losses and economic downturns.
Data from the National Bureau of Statistics (NBS) indicated that Nigeria exported crude oil valued at N10.31 trillion, in the three months from October to December 2023
This constitutes a bulk of the nation’s overall exports of products
Foreign trade data released by the NBS for the fourth quarter of 2023 showed that the value of crude oil taken out of the country in the three months under review grew by 20.80 per cent, accounting for a substantial portion of 81 percent of the total exports during the period.
Comparatively, Nigeria exported N8.53 trillion worth of crude oil in the third quarter of last year, compared to N4.91 trillion in the second quarter. This represents a 109.91 percent rise in value.
Owing to shrinking investment, vandalism, and widespread theft in the Niger Delta, Nigeria’s overall crude oil production had been slowly declining for years.
With a decline in crude production to nearly 900,000 barrels per day in the third quarter of 2022, the federal government decided to step up and enlist local security organisations in the pipeline’s monitoring programme.
A growth in upstream activities in the oil and gas sector is further illustrated by the notable increase in Nigeria’s oil rig count, which has recently reached around thirty.
Following months of consistent expansion, Nigeria’s crude oil production, excluding condensates, rose above 1.42 million barrels per day in January for the first time in years.
Moreover, it appears the nation will have either met or surpassed its 1.5 million barrels per day renegotiated quota with the Organisation of Petroleum Exporting Countries (OPEC) in Q3, 2023 when the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) releases the production data for February.
The report stated: “The value of crude oil exports in Q4, 2023 stood at N10,310.70 billion indicating an increase of 20.80 percent compared to the value recorded in Q3, 2023 (N8,535.61 billion) and increased by 109.91 percent when compared to the same period in 2022 (N4,911.92 billion).
“The value of other oil products exports in Q4, 2023 was N1,287.65 billion; this showed an increase of 13.61 percent and by 79.98 percent when compared to the value recorded in Q3, 2023 (N1,133.42 billion) and the value in the fourth quarter of 2022 (N715.45 billion) respectively,” the NBS report indicated.
Despite a 6.43 percent gain from the previous quarter, Nigeria’s performance in the solid minerals sector fell below expectations during the period under review, earning just N58.92 billion.
“The value of solid minerals imports in the fourth quarter of 2023 stood at N58.92 billion. This value was 6.43 percent higher than the value recorded in Q3, 2023 (N55.36 billion) and 72.68 percent higher than the value recorded in Q4, 2022 (N34.12 billion).”
The largest exported product in the fourth quarter of 2023 was petroleum oils and oils obtained from bituminous minerals, crude was valued at N10,310.70 billion, representing 81.23 percent.
“This was followed by natural gas, with N1,015.84 billion accounting for 8.00 percent, and urea, whether or not in aqueous solution, with N251.90 billion or 1.98 percent of total exports,” the report added.
However, Nigeria’s total trade during the fourth quarter of 2023 was N26,801.95 billion. The value of imports was N14,108.33 billion, while the value of exports was N12,693.62 billion.
The overall value of trade was N71,880.01 billion each year, of which N35,917.62 billion was recorded as imports and N35,962.39 billion as exports.
When compared to the total exports recorded in the third quarter of 2023, which came to N10,346.60 billion, and to the corresponding quarter in 2022, which came to N6,359.61 billion, the total exports in the reviewed quarter grew by 22.68 percent and 99.60 percent, respectively.
