Melvin onwubuke
Nigeria’s total oil export revenue reached N29 billion in 2023, which was a 37 per cent increase from the amount of N21.1 billion achieved last year.
This is contained in the recently released foreign trade report by the National Bureau of Statistics.
Further analysis showed that 80.64% of the exports recorded in this period were crude oil exported at N29 trillion.
A combination of foreign exchange depreciation and improved oil production has led to an increase in crude oil exports.
A combination of foreign exchange depreciation and improved oil production has led to an increase in crude oil export Crude oil production averaged 1.433 million barrels per day (mbpd) in 2023, a 4.9% increase when compared to the 1.37mbpd recorded in 2022, according to NBS data.
Similarly, As the CBN began to adopt the willing seller, willing buyer system on the official foreign exchange market, the exchange rate depreciated by 49.3% in 2023, after the naira was floated.
In contrast to the average of $104.62pb in the previous year, the price of crude oil on the global market fell by 18.7%, despite the euphoric price of $85.03pb.
t must be noted that the oil component of Nigeria’s Federation revenue continues to fall short of the projected budget, despite the notable increase in oil revenue.
The gross oil and gas revenue amounted to N5.58 trillion between January and September 2023. This figure represents a shortfall of 20.7% compared to the prorated budget of N7.04 trillion for the same period, according to data from the budget office.
Nigeria’s economy and government finances are affected by this shortfall in oil revenue. It highlights the volatility and uncertainty of relying on oil revenues, which can be affected by factors such as changes in worldwide oil prices, production levels, or demand dynamics.
It underscores the importance of diversifying the economy from its large dependence on oil exports.
Meanwhile, non-crude oil exports increased by 22.2% year over year to N6.96 trillion. Non-oil exports also rose by 22.9% to N3.14 trillion.
Imports stood at N35.92 trillion while export was N35.96 trillion, bringing the trade balance to N2.9 billion in 2023.
