Nigeria’s oil imports saw a significant decline of 35% in the second quarter of 2024, totaling $2.79 billion, down from $4.31 billion in the previous quarter.
This drop is highlighted in the Central Bank of Nigeria’s quarterly economic report for Q2 2024, reflecting the shifting dynamics in the country’s oil and gas sector.
The reduction in oil imports comes amid ongoing structural and economic adjustments following the removal of fuel subsidies under President Bola Tinubu’s administration.
These changes are expected to have a long-term impact on the energy landscape, as the government seeks to address inefficiencies and promote a more sustainable oil sector.
the report also noted a broader contraction in the nation’s trade. The overall value of merchandise imports fell by 20.59%, dropping to $8.64 billion in Q2 2024, from $10.88 billion in the first quarter of the year.
The report read, “Merchandise import decreased in Q22024, following the decline in the import of petroleum products. Merchandise imports decreased by 20.59 per cent to $8.64bn, from $10.88bn in Q12024.
“Analysis by composition indicated that oil imports decreased to $2.79bn, from $4.31bn in the preceding quarter.
“Non-oil imports also declined to $5.85bn, from $6.57bn in the previous quarter. A breakdown of total import showed that non-oil imports accounted for 67.72 per cent, while oil imports constituted the balance.”
The report further highlighted ongoing pressures on domestic oil production, which declined by 4.51% to 1.27 million barrels per day in the second quarter of 2024.
Persistent challenges, including oil theft and vandalism in the Niger Delta, continue to undermine production stability, exacerbating the country’s difficulties in meeting its oil output targets.
The report read, “Domestic crude oil production declined in Q22024, attributed to persistent oil theft and illegal refining activities in the NigerDelta region. Nigeria’s average crude oil production fell by 4.51 per cent to 1.27 mbpd in Q22024, from 1.33 mbpd in the preceding quarter.
“This was due to crude oil theft and pipeline vandalism in the Niger Delta region, leading to a decline in production from the Forcados, Bonny, Qua-Iboe, Escravos and Brass streams, respectively. Nigeria’s crude oil production level fell short of its OPEC quota of 1.58 mbpd by 308,000 bpd in Q22024.”
