In the second quarter of 2024, Nigeria saw a significant decrease in its oil imports, dropping by 35 percent. The total spent on oil imports was $2.79 billion, compared to $4.31 billion in the previous quarter. This information comes from a quarterly economic report published by the Central Bank of Nigeria.
This reduction in oil imports reflects changing trends in Nigeria’s oil and gas industry, which are occurring as the country makes various economic adjustments. These adjustments have been influenced by the removal of fuel subsidies, a change implemented by President Bola Tinubu’s administration.
The report also highlighted that the total value of all merchandise imports (which includes not just oil but all types of goods) fell by 20.59 percent, dropping from $10.88 billion in the first quarter of 2024 to $8.64 billion in the second quarter. The sharp decrease in oil imports was a significant factor in this overall decline.
The report stated that the drop in oil imports was a key reason for the overall decrease in merchandise imports. The imports of petroleum products specifically fell to $2.79 billion from $4.31 billion in the previous quarter. Meanwhile, non-oil imports also decreased, going from $6.57 billion to $5.85 billion. In this context, non-oil imports made up a large portion—67.72 percent—of total imports, while oil imports accounted for the remaining amount.
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The report further discussed the struggles in domestic oil production, which fell by 4.51 percent to 1.27 million barrels per day during the second quarter. Several ongoing issues, such as oil theft and damage to infrastructure in the Niger Delta region, have continued to disrupt stable production levels.
It stated, “The decline in domestic crude oil production in Q2 2024 is due to persistent problems like oil theft and illegal refining activities in the Niger Delta region. Average crude oil production fell by 4.51 percent, from 1.33 million barrels per day in the previous quarter. This drop was primarily caused by damage from oil theft and vandalism affecting key production streams such as Forcados, Bonny, Qua-Iboe, Escravos, and Brass. Notably, Nigeria’s production was also below its OPEC quota of 1.58 million barrels per day by 308,000 barrels in the same quarter.”
Despite these challenges, there was some positive news from the global oil market. The price of Nigeria’s primary crude oil, Bonny Light, increased to $86.97 per barrel in the second quarter of 2024. This rise offered a small boost to Nigeria’s revenue from exports.
Even though the export earnings from crude oil and gas had a slight decrease—from $12.42 billion in the first quarter to $12.18 billion in the second quarter—these exports still represented a substantial 87.38 percent of total export earnings for that period.
The Central Bank of Nigeria has also provided financial support to the oil sector, releasing a total of $2.97 billion for importing petroleum products and other related necessities.
