Nigeria's crude oil earnings drop by 40.3%

Nigeria's earnings from crude oil sales have dropped from N16,304.0 billion recorded in 2014 to N9,728.8 billion in 2015, representing a 40.3 per cent fall. National Bureau of Statistics gave the report in its Fourth Quarter 2015 Foreign Trade Statistics released at the weekend

The report showed that the contribution of crude oil to the value of total domestic export trade amounted to N6,945.3 billion or 71.4 per cent in 2015. The country's crude oil component of total trade decreased by N4,945.9 billion or 41.6 per cent as against the level recorded in 2014.

Notwithstanding a steep decline in crude oil exports by N4,945.9 billion or 41.6 per cent in 2015, the structure of Nigeria's exports is still dominated by crude oil exports.

Price of Brent crude oil dropped from the $41.54 it earlier recorded at the weekend to $41.20 while West Texas Intermediate also declined from the $40.10 a barrel to $39.44 per barrel.

A more than 60 per cent drop in global oil prices since 2014 has hammered Nigeria's economy and triggered a currency crisis, which has made the country to engage in diversification agenda.

Besides, the total value of Nigeria's merchandise trade during the fourth quarter of 2015 stood at N3,653.1 billion, 9.2 per cent lower than the value of N4,021.4 billion recorded in the preceding quarter.

The report revealed that the largest product exported by Nigeria in 2015 was 'Mineral products' which accounted for N8,574.3 billion or 88.1 per cent.

'Other products that contributed noticeably to Nigeria's exports include 'Vehicles, aircraft and parts thereof; vessels etc.' and 'Prepared Foodstuffs; beverages, spirits and vinegar; tobacco' whose values stood at N681.6 billion or seven per cent, and N167.1 billion or 1.7 per cent respectively, of the total exports of Nigeria for the year'.

Exports by continent, showed that Nigeria mainly exported goods to Europe and Asia, which accounted for N3,866.6 billion or 39.7 per cent and N2,945.8 billion or 30.3 per cent respectively, of the total export value for 2015.

Furthermore, Nigeria exported goods valued at N1,400.4 billion or 14.4 per cent to the continent of Africa while export to the Economic Community of West Africa States (ECOWAS) region totaled N608.3 billion.

It stated that the value of the nation's exports totaled N2,076.7 billion in fourth quarter, 2015, showed a decrease of N256.5 billion, or 11.0 per cent, over the value recorded in the preceding quarter.

'On an annual basis total exports from Nigeria stood at N9,728.8 billion at the end of 2015, representing a drop of N6,575.2 billion or 40.3 per cent over levels recorded in 2014. Notwithstanding a steep decline in crude oil exports by N4,945.9 billion or 41.6 per cent in 2015, the structure of Nigeria's exports is still dominated by crude oil exports. The contribution of crude oil to the value of total domestic export trade amounted to N6,945.3 billion or 71.4 per cent in 2015.

It noted that for the 2015 calendar year, the country's total trade was recorded at N16,426.8 billion, amounting to N7,251.6 billion or 30.6 per cent less than the total trade value recorded for 2014.

This development, it hinted, arose largely due to sharp decline the value of exports; from N16,304.0 billion in 2014 to N9,728.8 billion in 2015, a decline of 40.3 per cent. The Guardian