This is as total trade rose by 31.79 per cent from N39.75tn
in 2021 to N52.39tn in 2022. In 2022, crude oil sales totalled N21.09tn, a
46.41 per cent increase from N14.41tn in 2021. In 2022, crude oil accounted for
78.74 per cent of total export.
According to data from the National Bureau of Statistics,
total exports for 2022 rose by 41.72 per cent from N18.91tn in 2021 to N26.79tn
as of 2022. Imports rose by 22.77 per cent from N20.84tn in 2021 to N25.59tn in
2022.
In 2022, Nigeria spent N2.63tn importing food and live
animal; N10.12tn importing petroleum and other mineral fuel; N1.93tn on
manufactured goods; and N5.93tn on machinery and transport equipment.
Commenting on the growth of foreign trade, the NBS said, “In
the fourth quarter of 2022, Nigeria’s total trade stood at N11.72tn of which
total exports stood at N6.36tn and total imports amounted to N5.36tn.
“On an annual basis, total trade was N52.39tn, total imports
amounted to N25.59tn, and total exports were recorded at N26.79tn.”
Explaining the breakdown for Q4, 2022, the national
statistics body stated, “The top five export destinations in the fourth quarter
of 2022 were Spain, Netherlands, India, France, and Indonesia accounting for
9.70 per cent, 9.03 per cent, 7.71 per cent, 7.70 per cent and 7.44 per cent
respectively of total exports.
“Altogether, exports to the top five countries amounted to
41.59 per cent of the total value of exports.”
It added, “In terms of Imports, in the fourth quarter of
2022, China, Belgium, India, The Netherlands, and the United States of America
were the top five countries of origin of imports to Nigeria.
“The values of imports from the top five countries amounted
to N2.99tn representing a share of 55.82 per cent of the total value of
imports. The commodities with the largest values of imported products were
‘Motor Spirit Ordinary’ (N1.56tn), ‘Gas Oil’ (N220.47bn), and ‘Durum Wheat (Not
in seeds)’ (N187.96bn)”
Despite witnessing a boost in crude oil sales, the World
Bank had stated that Nigeria did not benefit from oil price boom because of
fuel subsidies and reduce oil production.
According to the global bank, the average price of crude oil
increased by over 150 per cent from 2020 to 2022, but Nigeria’s macroeconomic
performance weakened over this time, with its fiscal space shrinking. It stated
that in 2022, the government fiscal deficit was estimated to have increased to
5.7 percent of GDP from 5.4 percent in 2020 before the boom.
The Washington-based bank said that high production costs,
theft and insecurity, joint-venture cash-call arrears, and inadequate
investment have caused Nigeria’s crude oil output to fall consistently below
its Organisation of the Petroleum Exporting Countries quota since June 2020.
Commenting on fuel subsidy, the bank explained, “Second, the
ballooning cost of the petrol subsidy: The continuation of the petrol subsidy
(deducted directly from oil revenues) implies forgone fiscal revenues of
2.5–2.7 per cent of GDP in 2022.
“This, combined with the protracted decline in oil
production, has resulted in the lowest levels of net oil revenues (in percent
of GDP) being transferred to the government in over a decade.”
In its recent article IV report on Nigeria, the
International Monetary Fund stated, “Higher oil prices are yet to deliver
tangible benefits amid contraction of oil production and costly fuel
subsidies.”
According to the IMF, Nigeria has missed its opportunity to
benefit from higher global oil prices. From January to July 2022, Nigeria’s oil
production slumped by 28 million barrels threatening the Federal Government’s
N9.37tn oil and gas revenue target for 2022.
From January and April, the government projected that it
would earn N3.12tn, but only generated only N1.23tn in the period.
A former President, Association of National Accountants of
Nigeria, Dr Sam Nzekwe, had stated that the continued reduction in oil
production and the country’s inability to meet its revenue target might lead to
bankruptcy.
He said, “The massive oil theft in the Niger Delta, which is
on an industrial scale, has continued to stop Nigeria from meeting its OPEC
production quota. The impact of this is very clear. The finance minister told
you that the government was finding it difficult to meet its obligations
because of a lack of funds.”
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