Nigeria’s oil imports saw a significant drop of 35% in the second quarter of 2024, amounting to $2.79 billion a decrease from $4.31 billion recorded in the previous quarter. This sharp decline reflects key adjustments in Nigeria’s oil sector following recent economic shifts under President Bola Tinubu’s administration, particularly with the removal of fuel subsidies.
The Central Bank of Nigeria (CBN) released its quarterly economic report, outlining how the reduction in oil imports has also contributed to an overall 20.59% decrease in Nigeria’s merchandise imports, now totalling $8.64 billion for Q2 2024, down from $10.88 billion in Q1.
“Merchandise imports decreased in Q2 2024, following the decline in petroleum product imports,” the report stated. “Non-oil imports also fell to $5.85 billion from $6.57 billion in the previous quarter.”
Domestic production, however, continues to face setbacks, recording a 4.51% decrease, with average crude output falling to 1.27 million barrels per day (mbpd) due to ongoing challenges such as oil theft and pipeline vandalism in the Niger Delta region. This output still trails Nigeria’s OPEC quota of 1.58 mbpd.
Despite production setbacks, Nigeria’s benchmark crude, Bonny Light, gained some value, trading at $86.97 per barrel in Q2, offering a slight boost to export revenues, with crude oil and gas exports accounting for 87.38% of Nigeria’s total export earnings.