Nigeria’s oil imports saw a sharp decline of 35% in the second quarter of 2024, totalling $2.79 billion, down from $4.31 billion in the first quarter of the year.
This reduction, highlighted in the Central Bank of Nigeria’s quarterly economic report, reflects broader economic adjustments, including the removal of fuel subsidies under President Bola Tinubu’s administration.
The report also showed a contraction in overall merchandise imports, which fell by 20.59% to $8.64 billion in Q2, compared to $10.88 billion in Q1. The decline in oil imports was a significant contributor to this trend, with the oil sector still grappling with production instability.
“Merchandise imports decreased in Q2 2024, following the decline in the import of petroleum products. Oil imports decreased to $2.79 billion, from $4.31 billion in the preceding quarter,” the report noted.
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In addition to the decline in imports, Nigeria’s domestic oil production also suffered a setback. Crude oil output fell by 4.51% to 1.27 million barrels per day (mbpd), down from 1.33 mbpd in the first quarter. The report attributed this decline to ongoing challenges such as oil theft and pipeline vandalism in the Niger Delta.
Despite these challenges, the report highlighted a slight boost in global oil prices. Nigeria’s benchmark crude, Bonny Light, rose to $86.97 per barrel in Q2, offering some respite for export revenues.
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However, the country’s oil production remained well below its OPEC quota of 1.58 mbpd, missing the target by 308,000 bpd.
Crude oil and gas exports continued to dominate Nigeria’s export earnings, accounting for 87.38% of total exports in Q2. However, total export receipts showed a slight decrease, falling from $12.42 billion in Q1 to $12.18 billion.
In response to the continued need for petroleum products, the Central Bank of Nigeria had earlier disbursed $2.97 billion to oil sector players for imports, underscoring the country’s ongoing reliance on foreign supply to meet domestic demand.
