Nigeria earned a total of N29 trillion from oil exports in 2023, the National Bureau of Statistics (NBS) disclosed in its recently released foreign trade report. The amount is an increase of 37 per cent compared to N21.1 trillion recorded in 2022 and is reported to be the highest crude earning on record for Nigeria.
Analysis of the report showed that the N29 trillion crude exports was 80.64 per cent of the country’s exports within the period under review. Although there was a significant increase in oil revenue in 2023, the oil component of the federation’s revenue in Nigeria was still below the estimated budget.
Data from the Budget Office showed that gross oil and gas revenue amounted to N5.58 trillion between January and September 2023, which showed a 20.7 per cent decline compared to the prorated budget of N7.04 trillion for the same period.
The combination of foreign exchange devaluation and improved oil production were said to have accounted for the increase in crude oil export revenue.
The NBS data showed that crude oil production averaged 1.433 million barrels per day (mbpd) in 2023, which is a 4.9 per cent increase, compared to the 1.37mbpd recorded in 2022.
Similarly, the exchange rate fell by 49.3 per cent in 2023 as a result of the floating of the naira following the Central Bank of Nigeria’s (CBN) adoption of the willing seller, willing buyer system in the official foreign exchange market.
Further findings showed that average crude oil prices at the global market was $85.03 per barrel. However, inspite of this, crude oil prices declined by 18.7 per cent in contrast to an average of $104.62pb recorded in 2022.
