Nigeria’s revenue from crude oil increased by 83.23 per cent to N8.54 trillion during the reviewed quarter. The total amount of crude oil sold in the third quarter of 2022 was N4.66 trillion.
The Punch reported that Nigeria’s foreign trade increased to N 18.80tn in the third quarter of 2023, up 53.16 per cent year over year.
The National Bureau of Statistics’ “Foreign Trade in Goods Statistics (Q3 2023)” report states that overall exports rose by 60.78 per cent to N10.35 trillion during the period, helped by an increase in trade activities.
A portion of the report, which was made public on Monday, stated that in Q3, 2023, Nigeria’s total merchandise trade was N18.80 trillion. The value shows a 54.62% increase over the amount documented in Q2, 2023 as well as by 53.16 per cent when compared to the value recorded in Q3 2022.
In the reviewed quarter, total exports made up 55.02 per cent of total trade, valued at N10.35 trillion, an increase of 60.78 per cent and 74.36 per cent, respectively, over the value recorded in the corresponding and preceding quarters.
“Crude oil exports, valued at N8,535.61 billion and accounting for 82.50 per cent of total exports, dominated the third quarter of 2023’s export trade. Non-crude oil exports, worth N1.81 trillion, accounted for 17.50 per cent of total exports, with non-oil products contributing N677.57 billion, or 6.55% of total exports.
In contrast, during the third quarter of 2023, the value of imports accounted for 44.98 per cent of all trade in the third quarter of 2023 with the value of imports amounting to N8.46tn in Q3, 2023. This value indicates an increase of 47.70 per cent and 33.33 per cent respectively over the value (N5.73tn) and (N6.34tn) recorded in the preceding and the corresponding quarters of 2022.”
The trade balance of the nation was N1.89 trillion. According to the statistics body, Nigeria’s top export destinations were Spain (N1.27 trillion), India (N1.02 trillion), The Netherlands (N988.66 billion), Indonesia (N758.59 billion), and France (N720.45). 45.98 per cent of the total value of exports was made up of goods to the top five destinations.
China (N1.97 trillion), Belgium (N996.65 billion), India (N802.07 billion), Malta (N561.37 billion), and the United States of America (N502.92 billion) accounted for the majority of the nation’s imports (N4.84 trillion, or 57.18 percent) of all imports.
According to the NBS, the highest export value in the third quarter of 2023 was still “Petroleum oils and oils obtained from bituminous minerals, crude,” with N8.54 trillion representing 82.50% of total exports. This was followed by “Natural gas, liquefied,” which had N1.02 trillion representing 9.82%, and “Urea, whether or not in aqueous solution,” which had N109.68 billion or 1.06 per cent of total exports.
Regarding imports, it continued, “Motor Spirit Ordinary, valued at N1.92 trillion or 22.71 per cent, Gas oil, valued at N736.66 billion or 8.71 per cent, and Durum wheat (not in seeds), valued at N331.76 billion or 3.92 per cent of total imports, were the commodities with the largest values of imported products.”
During the 2024 fiscal framework update, the Federal Government revealed that oil production was 1.33 million barrels per day on average, which is less than the 1.69 million barrels per day target for the year. The nation’s oil production has been plagued by numerous issues.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, stated, “The oil industry contributes significantly to our foreign exchange earnings. Therefore, my goal is to figure out how I can steer the industry towards higher production and increased revenue so that we can finance important national initiatives.
“We have already started to gradually increase production. It was roughly 1.1 mbpd in August, but as of right now, it’s up to 1.3 mbpd, not counting condensates; if you count condensates, it’s closer to 1.7 mbpd.
Nonetheless, the recent depreciation of the naira may be connected to the increase in exports. JP Morgan stated earlier this year that the policy would inevitably result in the government receiving more money if the exchange rate dropped.
