How Nigeria is profiting from the Russia- Ukraine war

By Tolulope Oke

According to data released by the National Bureau of Statistics (NBS), Nigeria’s crude oil export reached a record N11.53 trillion, up 88.5% from the N6.12 trillion reported in a similar period of 2021.

Nigeria exported more crude oil than ever since the first half of 2019 (79.5% of all exports during the study period). In particular, Nigeria exported goods worth N14.51 trillion between January and June 2022, a rise of 81.2% from the corresponding period in 2021, Nairametrics reported.

The value of non-crude oil exports during the time was N2.98 trillion, a 12.2% rise from the N2.98 trillion recorded in the second half of last year and a 57.6% increase over the N1.89 trillion recorded in the similar period of 2021.

Despite the drop in daily production, Nigeria’s crude oil export revenues increased. The NBS reports that the daily production of crude oil averaged 1.43 million barrels per day in Q2 2022 and 1.49 million barrels per day in Q1 2022, respectively.

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The huge increase in crude oil prices that followed the conflict between Russia and Ukraine in February 2022, however, was what led to the boost in crude export earnings. In the first half of the year, the price of crude oil remained positive, trading at or above $125 a barrel for most of the time.

A scenario that caused Nigeria’s profits to soar despite a decline in volume. If production had increased, this amount would have been higher. However, it was sufficient to generate a surplus of N3.17 trillion in trade throughout the study period.

Nigeria’s Crude Oil Export (Nairametrics)