Nigeria saw a big shift in its oil imports during the second quarter of 2024, with a 35% drop compared to the first quarter. According to the Central Bank of Nigeria’s (CBN) latest economic report, oil imports fell to $2.79 billion from $4.31 billion in Q1. This decline is part of Nigeria’s ongoing economic adjustments after removing fuel subsidies under President Bola Tinubu’s administration.

The reduction in oil imports also affected Nigeria’s overall merchandise imports, which dropped by 20.59%—from $10.88 billion in Q1 to $8.64 billion in Q2. This decrease was mainly due to lower oil import levels. Non-oil imports also saw a decline, dropping to $5.85 billion from $6.57 billion in the previous quarter.

Nigeria’s oil production faced issues as well. Crude oil output fell by 4.51% in Q2 2024, averaging 1.27 million barrels per day (mbpd), down from 1.33 mbpd in Q1. The CBN report attributes this drop to ongoing problems like oil theft and pipeline damage in the Niger Delta region, impacting major production sites such as Forcados, Bonny, Qua-Iboe, Escravos, and Brass.

Nigeria’s production level in Q2 was also lower than its OPEC target of 1.58 mbpd, missing it by about 308,000 barrels per day.

Despite these production challenges, there was a slight relief due to higher global oil prices. The price of Nigeria’s benchmark crude, Bonny Light, rose to $86.97 per barrel in Q2 2024. This helped export earnings a bit, as crude oil and gas exports made up 87.38% of Nigeria’s export income in Q2. However, export revenues fell slightly to $12.18 billion, down from $12.42 billion in Q1.

This data shows that Nigeria’s oil and gas sector is experiencing significant changes as the government adjusts policies and deals with local production issues. The reduction in fuel imports and challenges in crude output underline the need for a more stable production environment to support the country’s economic growth.