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Nigeria’s Oil Exports Increase by 60.8% in Q3 of 2023, Says OPEC

Nigeria’s Oil Exports Increase by 60.8% in Q3 of 2023, Says OPEC

The Organisation Of Petroleum Exporting Countries (OPEC) has revealed that the oil exports in Nigeria grew significantly by 60.8% in the third quarter of 2023.

It also revealed that exports rose by 115%, y-o-y, reaching an unprecedented high of NGN3,867 billion, while imports surged by 34.5% to NGN2,429 billion.

According to the report, ”Nigeria boasted a significant trade surplus of 1,438.4 billion naira (NGN), a strong rebound from the NGN7.2 billion deficit recorded in September 2022.”

”In late January, the naira exchange rate was devalued from NGN975/US$
to NGN1,414/US$. As a consequence, imported inflation may rise, although the weakened local currency could offer further support to non-oil exports.”

Nevertheless, there is significant uncertainty regarding the currency’s trajectory, given historical trends. Additionally, concerns persist regarding inflationary pressures in Nigeria, with the inflation rate reaching 28.9% in December, marking the highest level in 2023.

Meanwhile, growth in the private sector persisted, as Nigeria’s January Stanbic IBTC Bank Purchasing Managers’ Index (PMI) rose to 54.5 in January 2024, up from 52.7 in December 2023. This improvement in business conditions is attributed to an expansion in purchasing activities.

”Moreover, business confidence has improved compared to the previous month, with firms maintaining a positive outlook on output growth in the year ahead. Nigeria’s near-term downside risks may be driven by challenges in the power grid, an intensification of monetary tightening, exchange rate fluctuations, inflation volatility, and global geopolitical uncertainty.” the report also said.


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