Nigeria’s Q3 Oil Exports Rise By 56% To N2.42trn
Nigeria more than doubled its crude oil exports in the third quarter of this year to N2.42tn after months of struggling to find buyers amid the collapse in demand.
Crude oil exports grew in value by 56 per cent in the third quarter compared to the second quarter but decreased in value by 35.3 per cent year-on-year, according to data obtained from the National Bureau of Statistics.
“The predominant export remained crude oil, which was valued at N2,424.8bn, representing 81.02 per cent of total exports while non-crude oil was valued at N568.2bn, or 18.98 per cent of total export during the review period,” the NBS said.
Nigeria’s crude oil valued at N1.03tn was exported to Europe, the country’s biggest export market, in the period under review.
The country exported oil worth N910.58bn to Asia while other African countries bought Nigerian oil valued at N343.46bn.
America imported N111.16bn worth of Nigerian crude while export to Oceania was valued at N29.82bn.
It was reported in August that the increasing flow of the United States crude into Europe was threatening to displace the region’s traditional light, sweet crudes, forcing sellers of Nigerian and Mediterranean crudes to discount September-loading cargoes.
S&P Global Platts quoted traders as saying that the spot market for September-loading cargoes from Nigeria had not seen any activity for more than two weeks.
They said would-be buyers in Europe were waiting for offers to fall further, reassured also by the absence of Asian interest.
The average daily oil production recorded in Q3 2020 stood at 1.67 million barrels per day, 0.14mbpd lower than production volume recorded in Q3 2020, according to the NBS.
It said real growth for the oil sector was –13.89 per cent (year-on-year) in Q3 2020, indicating a sharp contraction of –20.38 per cent points relative to the rate recorded in the corresponding quarter of 2019.
The bureau said real oil growth decreased by –7.26 per cent when compared with oil sector growth recorded in Q2 2020 (6.63 per cent).
It said, “Quarter-on-quarter, however, the oil sector recorded a growth rate of 9.64 per cent in Q3 2020.
“The sector contributed 8.73 per cent to total real GDP in Q3 2020, down from 9.77 per cent and 8.93 per cent respectively recorded in the corresponding period of 2019 and the preceding quarter, Q2 2020.”
Oil and gas account for about 50 per cent of the Nigerian government revenues and over 90 per cent of export earnings but account for only about 10 per cent of the country’s Gross Domestic Product.