Nigeria still ran at a loss despite a 46.41% increase in crude oil sales – World Bank

The National Bureau of Statistics reports that overall exports for 2022 increased by 41.72%, 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 food and live animals of N2.63 trillion in 2022, petroleum and other mineral fuels at N10.12 trillion, manufactured products worth N1.93 trillion, and machinery and transportation equipment worth N5.93 trillion.

The NBS commented on the expansion of international commerce, saying that in the fourth quarter of 2022, Nigeria’s overall trade was worth N11.72 trillion, of which total exports were worth N6.36 trillion and total imports were worth N5.36 trillion.

“The top five export destinations in the fourth quarter of 2022 were Spain, Netherlands, India, France, and Indonesia accounting for 9.70%, 9.03 per cent, 7.71%, 7.70% and 7.44% respectively of total exports,” the NBS stated.

“Altogether, exports to the top five countries amounted to 41.59% of the total value of exports. In terms of Imports, in the fourth quarter of 2022, China, Belgium, India, The Netherlands, and the United States of America were the top five countries of origin of imports to Nigeria.

The value of imports from the top five countries amounted to N2.99tn representing a share of 55.82 per cent of the total value of imports. The commodities with the largest values of imported products were ‘Motor Spirit Ordinary’ (N1.56tn), ‘Gas Oil’ (N220.47bn), and ‘Durum Wheat (Not in seeds)’ (N187.96bn),” the NBS added.

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 expected fiscal deficit rose from 5.4 percent of GDP in 2020 before the boom to 5.7 percent of GDP in 2022.

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.

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