Nigeria Spent More Than It Earned In 2018 – OPEC Report

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Oil Refinery

Nigeria spent more money, importing petroleum products in 2018, than it earned from its crude sales.

According to figures published by the Organisation of Petroleum Exporting Countries, (OPEC) in its Annual Statistics Bulletin, (ASB) Nigeria earned a total of $54.513 billion from exports of its petroleum products, in the year in review, but spent $54.645 billion, importing refined petroleum products.

According to the same report, while export figures grew in 2018 by $16.53 billion, from $37.983 billion in 2017, the country gained nothing, as the value of imports already exceeded that of exports.

Recently, the Nigerian National Petroleum Corporation, itself, (NNPC) stated that the country’s total export sales from crude oil and gas amounted to $490.03 million in February 2019 alone, 32.45 per cent higher than sales of previous months.

The Monthly Financial and Operations Report (MFOR) released in Abuja also states that crude oil export sales also shored up the dollar transactions, contributing a total of 71.48 per cent or $350.29 million, compared with $240.23 million in the previous month.

Explaining further, this report, (the NNPC’s 43rd edition of its MFOR) export gas sales amounted to $139.74 million in the month under review. It states that crude oil and gas exports between February 2018 and February 2019, was worth $5.94 billion.

According to OPEC’s ASB, Nigeria’s population grew by 5.3 million, between 2017 and 2018, just a space of one year, alone. With an estimated over 200 million population and not being able to refine its own crude oil, the country spends its huge fortunes, importing refined petroleum products. The country spent N2.582 trillion on fuel importation, from January to September 2018, (a space of nine months) up 12.9 per cent, from N2.289 trillion of the first three quarters of 2017.

Data from the third quarter of the 2018 Foreign Trade Statistics of the National Bureau of Statistics, (NBS) shows that for the first and second quarters of 2018, Nigeria’s fuel imports stood at N845.12 and N720.4 billion, respectively.

Also, according to the ASB figures, Nigeria made more money from exports of petroleum products in 2014, within a five-year period, a total of $75.196 billion.

The crude oil price crash, which began in 2015, saw the country’s value of exports drop to $41.168 billion, worsening in 2016, to a low of $27.295 billion.

Unfortunately, even with the new, improved sales figures, the country has gained virtually nothing, with its petroleum products import values of $54.645 billion, exceeding the export figures of $54.513 billion, in 2018.

The country’s import value of $70.778 billion in 2014, on the other hand, dropped to $52.525 in 2015. Subsequently, $46.552 billion was recorded in 2016; $49.508 billion in 2017 and finally, another high of $56.645 billion, in 2018.

Source: Ships & Ports

Photo: Courtesy, safetyandhealthmagazine.com

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