Despite Stunted Output Growth, Nigeria Rakes in N70tn Revenue from Oil Export

Emmanuel Addeh in Abuja 

In spite of the many challenges besetting Nigeria’s struggling oil and gas sector, the country’s revenue from the sector rose to N70.1 trillion in 15 months, spanning January 2024 to March 2025.

Data from the National Bureau of Statistics (NBS) reviewed by THISDAY showed that despite the multiple setbacks, ranging from crude theft to underinvestment, Nigeria managed to sustain a strong export drive, driven in part by moderately high global commodity prices.

According to the NBS data, total exports for the 15-month period stood at N70.1 trillion, marking a notable increase from preceding cycles, and underlining the complex dynamics shaping Nigeria’s economy at a time when oil output, the traditional backbone of the economy, continues to underwhelm.

The significant export sales revenue is coming despite Nigeria hovering just below the country’s official Organisation of Petroleum Exporting Countries (OPEC) quota averaging 1.4 million bpd for much of  the period under review.

On a brighter note, Brent crude prices averaged $80 per barrel during much of the period in question, buoyed by geopolitical tensions and coordinated production cuts by oil-producing countries. That, coupled with the depreciating naira, which makes exports more attractive, played a significant role in boosting export figures in naira terms.

According to an analysis of the NBS data, exports trade in the first quarter of 2024 was dominated by crude oil exports valued at N15.49 trillion representing 80.80 per cent of total exports from January to March of last year.

In the same vein, in the second quarter of 2024, Nigeria’s crude oil exports were valued at N14.56 trillion, representing 74.98 per cent of the country’s total exports. However, this figure was a decrease of 5.99 per cent compared to the N15.49 trillion in the first quarter of 2024, but a substantial increase of 190.86 per cent compared with  N5.01 trillion in the second quarter of 2023.

Besides, in Q3 2024, Nigeria’s crude oil exports were valued at N13.406 trillion. The figure represented 65.44 per cent of the country’s total exports for the quarter, according to the statistics bureau.

In Q4 2024, Nigeria’s crude oil exports were valued at N13.78 trillion. This represented a 33.68 per cent increase from Q4 2023, which was N10.31 trillion and a 2.81 per cent increase from Q3 2024, which was N13.41 trillion, according to the NBS.

For that quarter, crude oil accounted for 68.87 per cent of Nigeria’s total exports during that period.

Finally, although Nigeria’s crude oil exports fell in the first quarter of 2025, totaling approximately N12.96 trillion ($9.2 billion), marking a 16.3 per cent decline compared to N15.49 trillion ($11 billion) in Q1 2024, and a 6 per cent drop from N13.78 trillion ($9.8 billion) recorded in Q4 2024, it was nevertheless a good showing for the country.

Despite the upbeat tone of the export data under the current administration, oil remains the central pillar of Nigeria’s external earnings as worries over the country’s significant dependence on a single commodity persist.

It is believed that this dominance comes with risks. A recent report by the Nigeria Extractive Industries Transparency Initiative (NEITI) warned that the country’s overreliance on oil earnings in a volatile global energy market remains a fiscal danger.

Nigeria, Africa’s largest oil producer, continues to struggle with stagnant crude production despite abundant reserves and rising global demand. Even with intermittent recoveries, the country has rarely sustained output above 1.5 million bpd, excluding condensate, in recent years.

The country holds over 37 billion barrels of proven crude reserves and about 200 Trillion Cubic Feet (TCF) of natural gas. Yet, production remains erratic, constrained by issues that reach deep into the country’s energy infrastructure and governance systems.

Although there have been recent modest signs of recovery,  these gains remain fragile, being the outcome of years of structural neglect and policy inertia, as the global energy market continues to shift rapidly.