Nigeria’s proceeds from the export of crude oil in 2020 crashed by 35.7 per cent amid low demand for the commodity and OPEC production cuts last year.
BizWatch Nigeria’s analyses of Nigeria’s Trade Export data obtained from the National Bureau of Statistics showed that Nigeria earned N9.44 trillion from crude oil export as against N14.69 trillion in 2019.
The crash in global oil prices in March last year coupled with dwindling demand for Nigeria’s crude affected Nigeria’s economy whose foreign exchange income comes mostly from crude export.
This led to scarcity of forex needed for legitimate import of raw materials by manufacturers and repatriation of investors’ earnings.
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Nigeria exported crude oil worth N2.94 trillion in the first quarter of 2020; N1.55 trillion in the second quarter of last year; N2.42billion in the third quarter of 2020 and N2.52 trillion in the fourth quarter of last year.
Analyses on the 2019 trade crude oil data from NBS showed that Nigeria’s quarterly earnings from crude oil export was higher than quarterly earnings from the commodity in 2019.
In the first quarter of 2019, the nation earned N3.38 trillion from the export of crude oil; N3.94 trillion in the second quarter; N3,75 trillion in the third quarter and N3.63 trillion in the fourth quarter of the year.
The 13-member Organization of the Petroleum Exporting Countries and other producers led by Russia, known as OPEC+, agreed in April to an output cut to offset a slump in demand and prices caused by the coronavirus crisis.
They decided to cut supply by a record 9.7 million barrels per day for May and June but the deal was extended till December last year.
The biggest drop in production output was recorded in Nigeria after force majeure was declared on exports of ExxonMobil’s Qua Iboe, one of Nigeria’s largest production streams but was lifted on January 22.
Meanwhile, producers have agreed to increase output as demand and crude oil prices recover.
