Nigeria’s Crude Export Earnings Drop to N12.96tn Amid Refining Setbacks and Production Decline

Nigeria’s crude oil export earnings fell to N12.96 trillion in the first quarter of 2025, representing a 16.34% year-on-year drop and a 6.01% decline from the previous quarter. The fall is largely attributed to operational challenges facing local refineries, including limited access to feedstock. The report by the National Bureau of Statistics (NBS) noted that crude oil, despite the earnings dip, remained the country’s most valuable export, making up 62.89% of total export value for the quarter.

Nonetheless, Nigeria recorded a trade surplus of N5.17 trillion, up by over 51% from the previous quarter, driven by increased non-crude exports. Total trade value reached N36.02 trillion, a 6.19% rise year-on-year. While crude oil earnings declined, they still outstripped other key exports like liquefied natural gas, petroleum gases, urea, and cocoa beans, underscoring the country’s continued reliance on the commodity.

India led the pack of Nigeria’s crude oil buyers, importing N1.41 trillion worth of oil, followed closely by the Netherlands and France. African nations such as South Africa, Côte d’Ivoire, Senegal, and Ghana also made substantial purchases. These figures underline Nigeria’s ongoing dependence on foreign buyers due to insufficient domestic refining capacity, a longstanding issue for the nation’s energy sector.

On a more positive note, non-crude oil exports soared to N4.48 trillion in Q1 2025, more than doubling from the same period in 2024. This surge indicates growing resilience and diversification in the export sector. Other oil products, particularly, posted a 134.24% increase year-on-year, helping to offset the decline in crude oil earnings.

Additionally, Nigeria saw a marked reduction in its petrol import bill, falling from N3.81 trillion in Q1 2024 to N1.76 trillion in Q1 2025, largely due to increased domestic production from the Dangote Refinery. However, crude oil output remained under pressure, dropping to an average of 1.45 million barrels per day in May. Despite these hurdles, the country’s trade balance stayed positive, buoyed by strong non-crude exports and progress in petroleum sector reforms.

Source: The Sun