Nigeria’s crude oil export earnings soared by 50.2% in the first quarter of 2024, reaching N15.4 trillion, according to the latest data from the Nigeria Bureau of Statistics (NBS). This marks a significant increase from the N10.3 trillion recorded in the fourth quarter of 2023.
The NBS data also revealed that 88% of Nigeria’s total exports in Q1 2024 were from crude oil, underscoring oil’s role as the country’s primary export commodity and main source of foreign exchange. In a year-on-year comparison, the value of crude oil exports surged by an impressive 200.79%, rising from N5.1 trillion in Q1 2023.
Overall, Nigeria’s total exports for the first quarter of 2024 rose by 51%, reaching N19.1 trillion, up from N12.6 trillion in Q4 2023. On an annual basis, total exports increased by 95.47%, up from N6.4 trillion in Q1 2023. Crude oil exports contributed N15.4 trillion to this total, while non-crude oil exports were valued at N3.6 trillion.
The value of non-oil commodities also saw an improvement, rising from N1.09 trillion in Q4 2023 to N1.7 trillion in Q1 2024. This slight increase indicates a growing diversification in Nigeria’s export portfolio, although crude oil remains the dominant contributor.
One critical factor driving the increase in crude oil export earnings was the depreciation of the naira in early 2024. The official exchange rate fell to N1,309/$1 in March, marking a 64% depreciation. This currency depreciation significantly boosted the naira value of oil exports, despite the relatively stable crude oil output and prices.
According to OPEC data from March 2024, Nigeria’s crude oil output stood at 1.23 million barrels per day (bpd), showing no significant growth since the beginning of the year. Crude oil prices remained relatively stable, fluctuating between $79 and $81 per barrel during the period.
The increased earnings from oil exports, therefore, appear to be largely driven by the devaluation of the naira rather than a rise in production or oil prices. This highlights the complex interplay between currency fluctuations and export revenues in Nigeria’s oil-dependent economy.
The NBS report does not provide data volumes, focusing instead on the value of exports.
