Olayemi Cardoso CBN Governor
Nigeria’s oil imports saw a significant decline of 35% in the second quarter of 2024, amounting to $2.79 billion, down from $4.31 billion in the previous quarter, according to the Central Bank of Nigeria’s quarterly economic report.
This reduction reflects ongoing shifts in the country’s oil and gas sector, particularly in light of the removal of fuel subsidies under President Bola Tinubu’s administration. The broader trend of reduced imports also saw the total value of merchandise imports drop by 20.59% to $8.64 billion from $10.88 billion in Q1 2024.
Key takeaways from the report:
- Oil imports decreased significantly, contributing to the overall decline in merchandise imports.
- Non-oil imports also fell, dropping from $6.57 billion to $5.85 billion in Q2.
- Domestic crude oil production fell by 4.51%, averaging 1.27 million barrels per day, due to challenges like oil theft and pipeline vandalism in the Niger Delta.
- Despite production setbacks, Nigeria’s oil export revenues were supported by a rise in global crude oil prices, with Bonny Light crude averaging $86.97 per barrel.
The report highlights the ongoing economic adjustments Nigeria is undergoing, particularly within the oil and gas sector, while also emphasizing the persistent issues hindering domestic oil production, such as theft and illegal refining activities.
The CBN’s efforts to provide support to the oil sector continue, with the release of $2.97 billion for the importation of petroleum products and related items.
