Nigeria Sees 35% Drop in Oil Imports in Q2 2024
In the second quarter of 2024, Nigeria experienced a significant decline in oil imports, as reported by the Central Bank of Nigeria (CBN). The figures plummeted by 35% to $2.79 billion, down from $4.31 billion in the previous quarter. This reduction comes as a result of structural adjustments following the removal of fuel subsidies under President Bola Tinubu’s administration, signaling a notable shift in the nation’s oil sector.
The CBN’s quarterly economic report also revealed a 20.59% decrease in total merchandise imports, which dropped to $8.64 billion from $10.88 billion in Q1. The decrease in oil imports played a significant role in this overall contraction.
According to the report, “Merchandise import decreased in Q2 2024, following the decline in the import of petroleum products. Merchandise imports decreased by 20.59% to $8.64 billion, from $10.88 billion in Q1 2024.
Analysis by composition indicated that oil imports decreased to $2.79 billion, from $4.31 billion in the preceding quarter. Non-oil imports also saw a decline, accounting for $5.85 billion of the total.
The CBN report also highlighted a 4.51% decrease in Nigeria’s domestic oil production, falling to 1.27 million barrels per day (mbpd) due to ongoing issues of oil theft and illegal refining in the Niger Delta region. This production rate fell below Nigeria’s OPEC quota of 1.58 mbpd, affected by disruptions in key oil streams such as Forcados, Bonny, Qua-Iboe, Escravos, and Brass.
Despite these challenges, global oil prices provided some relief, with Bonny Light crude oil prices rising to $86.97 per barrel, contributing to export revenues. Crude oil and gas exports, although slightly reduced, still made up 87.38% of Nigeria’s total export earnings, generating $12.18 billion in Q2 2024 compared to $12.42 billion in Q1.
Earlier, the Central Bank of Nigeria allocated $2.97 billion to support the oil sector players for the importation of petroleum products, ensuring supply stability amidst the evolving economic landscape of the country.
