By Innocent Obasi
Nigeria crude oil and gas export earnings have increased by $40.86 billion (about N18.18 trillion) in the first eight months of 2022 which is a 60.42 percent increase against $25.47 billion generated in the corresponding period of 2021.
The Central Bank of Nigeria (CBN), made the disclosure in its economic reports for the period under review which indicated that crude oil and gas export receipts account for over 80 per cent of Nigeria’s total export.
The apex data specifically showed that in the first half of 2021 (H1’21), the federal government raked in $17.70 billion from crude oil and gas exports compared to the $30.89 billion that it earned in the first six months of 2022.
Additionally, the CBN data indicates that the government earned a total of $9.97 billion from crude oil and gas exports in July and August 2022 compared with $7.77 billion in the corresponding period of last year.
However, the latest data released by the regulator shows that the country’s earnings from crude oil and gas exports have been on a downward trend in recent months.
In its economic report for August 2022, for example, the CBN pointed out that uncertainties about OPEC+ crude oil output decisions have moderated crude oil prices in the international market, thereby affecting Nigeria’s crude oil export receipts.
Provisional data shows that a lower crude oil and gas export receipts of $4.58 billion was recorded in August 2022, compared with $5.39 billion in July 2022. A breakdown by the main components further reveals that crude oil export receipts declined by 18.0 per cent to $3.89 billion, relative to S$4.74 billion in the preceding month. Recent crude oil price trends and domestic production challenges were attributed to the decline in crude oil export receipt.
On the other hand, gas export receipts increased by 7.0 per cent to $0.70 billion, compared with $0.65 billion in the preceding month. In terms of share, crude oil and gas exports accounted for 88.1 per cent of total exports, with oil constituting 74.7 per cent and gas export accounting for 13.4 per cent.
Likewise, in its July 2022 economic report, the apex bank explained that concerns over the prospects of global recession and the lockdown in major cities in China, dampened oil demand, and resulted in the decline in crude oil prices.
“The lower price and the decline in domestic crude oil output, weighed on export receipts. Consequently, a lower crude oil and gas export receipts of $5.39 billion was recorded, compared with $5.52 billion in June.
“A breakdown shows that crude oil export fell by 0.8 per cent to $4.74 billion from $4.78 billion in the preceding month. The decline was caused by a decrease in both the price and output of Nigeria’s reference crude.
“The price of Bonny Light fell by 7.4 per cent to an average of $120.54 pb, compared to $130.10 pb in June, while production fell by 5.8 per cent to 1.13mbpd from 1.20mbpd in June. Gas export receipts also declined by 12.3 per cent to $0.65 billion, compared with $0.74 billion in the preceding month. Crude oil and gas exports accounted for 89.6 per cent of total exports (oil, 78.8 per cent and gas, 10.8 per cent).”