Devaluation of the naira and improved oil production pushed earnings from crude oil export to N29 trillion in 2023, a 37 per cent increased compared to the N21.1 trillion recorded in 2022.
According to the foreign trade report by the National Bureau of Statistics (NBS), this is the highest crude earning on record for Nigeria.
According to the NBS, crude oil production averaged 1.433 million barrels per day (mbpd) in 2023, a 4.9 per cent increase when compared to the 1.37mbpd recorded in 2022.
In the same vein, the exchange rate depreciated by 49.3 per cent in 2023 following the floating of the naira as the CBN began the adoption of the willing seller, willing buyer system in the official forex market.
Despite the significant increase in oil revenue, it’s important to note that the oil component of the federation’s revenue in Nigeria still falls below the estimated budget.
According to data from the Budget Office, gross oil and gas revenue amounted to N5.58 trillion between January and September 2023. This figure represents a shortfall of 20.7 per cent compared to the prorated budget of N7.04 trillion for the same period.
According to the NBS, total foreign trades increased by 37.2 per cent from N52.39 trillion recorded in 2022 to N71.88 trillion in the review year. Imports stood at N35.92 trillion while export was N35.96 trillion, bringing the trade balance to N2.9 billion in 2023.
Meanwhile, non-crude oil exports increased by 22.2 per cent year over year to N6.96 trillion, while Non-oil exports also rose by 22.9 per cent to N3.14 trillion.
