Nigeria’s crude oil export earnings surged to an estimated N20.22 trillion in the first five months of 2026, highlighting the country’s continued dependence on the oil sector as a major source of foreign exchange. Despite exporting fewer barrels compared to the same period last year, rising international crude prices significantly increased the overall value of exports, providing a major boost to government revenue and the economy.
Data from the Central Bank of Nigeria showed that the country exported approximately 148.9 million barrels of crude oil between January and May 2026, generating about $14.66 billion. Although export volumes fell by 3.3 per cent from the 154 million barrels recorded during the same period in 2025, export earnings jumped by nearly 30 per cent due to a sharp rise in global oil prices. Analysts attributed the increase largely to market disruptions linked to the US-Iran conflict, which pushed crude prices above $100 per barrel in several months.
Nigeria’s total crude oil production during the review period stood at about 216.85 million barrels, with an estimated market value of $21.28 billion. Production gradually improved throughout the period, rising from 1.46 million barrels per day in January to 1.53 million barrels per day in May. Crude exports also increased steadily, reflecting stronger output and growing international demand amid heightened geopolitical tensions in global energy markets.
However, the strong export performance has reignited concerns about domestic crude availability for local refineries. While nearly 69 per cent of Nigeria’s crude production was exported, only about 67.95 million barrels remained available for local refining and other domestic needs. Industry stakeholders warn that excessive exports could undermine efforts to achieve energy self-sufficiency, particularly as local refineries, including the Dangote Refinery, continue to seek adequate crude supplies to sustain operations.
The debate over crude allocation has intensified, with refinery operators urging the Federal Government to fully implement domestic crude supply obligations under the Petroleum Industry Act. Industry representatives argue that prioritising exports at the expense of local refining could slow the growth of Nigeria’s downstream sector. As global oil prices continue to shape export revenues, policymakers face the challenge of balancing foreign exchange earnings with the need to strengthen domestic refining capacity and reduce reliance on imported petroleum products.
source: punch
