Business

Crude oil, electricity, cocoa, others raise Nigeria’s export by 23.13% in Q1 2022

Published

2 years ago

2022/06/06

Crude oil, natural gas, urea, cocoa, among others raised Nigeria’s exported merchandise worth in the first quarter of 2022 by 23.13%.

According to a foreign trade report by the National Bureau of Statistics (NBS) the exported merchandise worth N7.1 trillion compared to N5.77 trillion recorded at the same time in 2021.

The increase in Nigeria’s export earnings turned the foreign trade balance in favour of Nigeria for the first time since Q2 2021 and the highest since Q3 2019.

Below is a breakdown of the top exports in the first quarter of 2022:

Crude oil – N5.62 trillion

Nigeria exported petroleum oil and oils obtained from bituminous minerals in crude form worth N5.62 trillion in Q1 2022. This represents about 79.16% of the country’s total exports in the period under review.

The N5.62 trillion is significantly higher than the N4.27 trillion recorded in the previous quarter (Q4 2021). The increase in the value of crude export earnings is attributed to the rally in crude prices recorded in the first quarter of the year.

A report by Nairametrics noted the prices of crude oil rose significantly to as high as $127 per barrel in Q1 2022 after world economies placed trade sanctions on Russia for invading Ukraine in February 2022.

Natural gas – N655.94 billion

Nigeria exported N655.94 billion worth of natural gas in Q1 2022, a 14% increase compared to N573.85 billion recorded in Q4 2021, and accounting for 9.24% of the total exports. The rise in the value of natural gas was largely due to the rally in the crude oil market.

Also, considering that most European countries were shunning Russian energy sources as a result of invasion of Ukraine, Nigeria was able to increase its earnings given that the African giant is also one of the world largest producers of natural gas.

Urea – N208.39 billion

Nigeria’s Urea export increased marginally in Q1 2022 to N208.39 billion from N208.05 billion recorded in the previous quarter. The export of urea, whether in aqueous solution or not, accounted for 2.93% of the country’s total export in the period under review.

The federal government had disclosed earlier in the year that the $2.5 billion Dangote Fertilizer plant has presented Nigeria as the leading producer of urea in Africa. This is following the commencement of export operations by the company to the US, India, Brazil amongst others.

Petroleum gases – N93.7 billion

Petroleum gases accounted for 1.32% of the total export recorded in the period at N93.7 billion. This is 28% higher than the N73.15 billion recorded in the previous quarter. The increase cannot be isolated from the rally recorded in the crude oil market and the subsequent global energy crisis that followed.

Floating/submersible platforms – N89.93 billion

Nigeria exported floating or submersible drilling or production platforms worth N89.93 billion in Q1 2022, accounting for 1.27% of the total export value. Note that a submersible drilling rig is a marine vessel that is designed to float from one location to another and can be lowered onto the sea floor for offshore drilling activities.