Nigeria’s exports of crude oil increased by 46.41 percent in 2022, bringing the total to N26.79 trillion.
The Punch reported that the entire amount of commerce increased by 31.79 percent, from N39.75 trillion in 2021 to N52.39 trillion in 2022. Sales of crude oil reached N21.09 trillion in 2022, a 46.41 percent rise from N14.41 trillion in 2021. Crude oil constituted 78.74% of all exports in 2022.
The National Bureau of Statistics revealed that overall exports for 2022 increased by 41.72 percent, from N18.91 trillion in 2021 to N26.79 trillion in 2022. In 2022, imports increased by 22.77% from N20.84 trillion in 2021 to N25.59 trillion.
Nigeria imported N2.63 trillion worth of food and live animals in 2022, N10.12 trillion worth of petroleum and other mineral fuels, N1.93 trillion worth of manufactured goods, and N5.93 trillion worth of machinery and transportation equipment.
The NBS gave this report regarding the expansion of international commerce, “In the fourth quarter of 2022, Nigeria’s total trade stood at N11.72 trillion, of which total exports stood at N6.36 trillion and total imports amounted to N5.36 trillion.
“Total annual commerce was N52.39 trillion, with N25.59 trillion in imports and N26.79 trillion in exports.
Also, the top five export destinations in the fourth quarter of 2022 were Spain, Netherlands, India, France, and Indonesia, accounting for 9.70%, 9.03%, 7.71%, 7.70%, and 7.44%, respectively, of total exports, according to the national statistics authority, which explained the breakdown for Q4.
The top five export destinations accounted for 41.59 percent of all exports in total.
“In terms of imports, China, Belgium, India, The Netherlands, and the United States of America were the top five countries of origin of imports to Nigeria in the fourth quarter of 2022,” it continued.
The top five countries’ imports were N2.99 trillion, or 55.82 percent of all imports. This represents a proportion of N2.99 trillion. Motor Spirit Ordinary (N1.56tn), Gas Oil (N220.47bn), and Durum Wheat (Not in seeds) (N187.96bn) were the goods with the highest import values.
Despite a rise in crude oil sales, the World Bank had claimed that Nigeria had not benefited from the increase in oil prices due to fuel subsidies and lower oil production.
The global bank estimates that between 2020 and 2022, the average price of crude oil grew by approximately 150%, while Nigeria’s macroeconomic performance deteriorated and its fiscal space shrunk over this period.
It said that the government’s projected fiscal deficit for 2022 was to have increased to 5.7% of GDP from 5.4% to 2020 before the boom.
The Washington-based bank claimed that since June 2020, Nigeria’s crude oil output has continually fallen below its Organization of the Petroleum Exporting Countries quota due to high production costs, theft and instability, joint venture payment call arrears, and inadequate investment.
The bank commented on the fuel subsidy, saying, “Second, the exploding cost of the gasoline subsidy: The continuation of the gasoline subsidy (deducted straight from oil income) indicates forgone fiscal revenues of 2.5-2.7 percent of GDP in 2022.
This, together with the ongoing drop in oil output, has caused the government to receive the least amount of net oil revenues (measured as a percentage of GDP) in more than a decade.
The International Monetary Fund stated in its most recent article IV report on Nigeria that “higher oil prices are yet to generate significant benefits amid contraction of oil production and expensive fuel subsidies.”
The IMF claims that Nigeria has lost out on the opportunity to gain from rising world oil prices. Nigeria’s oil production fell by 28 million barrels between January and July 2022, endangering the Federal Government’s goal of N9.37 trillion in oil and gas revenue for the year.
The government forecasted earning N3.12 trillion between January and April, but only N1.23 trillion was actually generated during that time.
Dr. Sam Nzekwe, a former president of the Association of National Accountants of Nigeria, warned that the country’s inability to fulfill its income objective and the ongoing decline in oil production could result in bankruptcy.
“The huge, industrial-scale oil theft in the Niger Delta has continued to prevent Nigeria from fulfilling its OPEC production limit,” he declared. The result is extremely obvious. You were informed by the finance minister that a lack of funding was making it difficult for the government to fulfill its duties.”