Nigeria’s oil importation dropped to $2.79bn from $4.31bn in Q2 of 2024. This amounts to $1.52bn decline or a 35 per cent decline.
This development was contained in the Central Bank of Nigeria’s quarterly economic report for the second quarter of 2024 released recently.
This reduction highlights shifting dynamics in the nation’s oil and gas sector amid ongoing structural and economic adjustments following the removal of fuel subsidies under the administration of President Bola Tinubu.
The report also noted that the overall value of merchandise imports contracted, falling by 20.59 per cent to $8.64bn from $10.88bn recorded in Q1 2024.
The sharp decline in oil imports contributed significantly to this trend, the report noted.
The report reads: “Merchandise import decreased in Q2 2024, following the decline in the import of petroleum products. Merchandise imports decreased by 20.59 per cent to $8.64bn, from $10.88bn in Q12024.
“Analysis by composition indicated that oil imports decreased to $2.79bn, from $4.31bn in the preceding quarter.
“Non-oil imports also declined to $5.85bn, from $6.57bn in the previous quarter. A breakdown of total import showed that non-oil imports accounted for 67.72 per cent, while oil imports constituted the balance.”
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The report further noted the pressures on domestic production, which fell by 4.51 percent to 1.27m barrels per day.
“Domestic crude oil production declined in Q2, 2024, attributed to persistent oil theft and illegal refining activities in the Niger-Delta region. Nigeria’s average crude oil production fell by 4.51 percent to 1.27 mbpd in Q22024, from 1.33 mbpd in the preceding quarter.
“This was due to crude oil theft and pipeline vandalism in the Niger Delta region, leading to a decline in production from the Forcados, Bonny, Qua-Iboe, Escravos and Brass streams, respectively. Nigeria’s crude oil production level fell short of its OPEC quota of 1.58 mbpd by 308,000 bpd in Q22024.”
However, despite these setbacks, global crude oil prices provided a slight reprieve. Nigeria’s benchmark crude, Bonny Light, saw its price rise to $86.97 per barrel in Q2 2024, offering some relief to export revenues according to the report.
Crude oil and gas exports accounted for 87.38 percent of total export earnings during the quarter, although receipts fell marginally to $12.18bn from $12.42bn in Q1.
Earlier, the Central Bank of Nigeria released a total sum of $2.97bn to oil sector players for the importation of petroleum products and other related items into the country.
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