Nigeria earns N20.2tn from crude oil exports in five months

Nigeria generated an estimated N20.22tn from crude oil exports between January and May 2026, as higher international oil prices boosted earnings despite a decline in export volumes.

An analysis of crude oil production and export data showed that the country exported about 148.9 million barrels of crude during the five-month period, valued at approximately $14.66bn, or N20.22tn at an exchange rate of N1,380 to the dollar.

The crude exports, handled by international and indigenous oil companies as well as the Nigerian National Petroleum Company Limited, contributed significantly to Nigeria’s foreign exchange earnings, although concerns remain over the availability of crude for local refineries.

Compared to the corresponding period in 2025, export volumes declined by 3.3 per cent from 154 million barrels. However, export earnings rose by 29.5 per cent, driven by a sharp increase in global crude oil prices.

Data from the Central Bank of Nigeria also showed that the country produced about 216.85 million barrels of crude oil between January and May, with an estimated market value of $21.28bn or N29.36tn.

Monthly exports stood at 31.31 million barrels in January, 24.08 million in February, 28.83 million in March, 31.20 million in April and 33.48 million in May.

The country exported about 68.7 per cent of its total crude production during the review period, leaving nearly 67.95 million barrels for domestic refining, storage and other operational needs.

The surge in crude prices was linked to geopolitical tensions in the Middle East, particularly the US-Iran conflict and the closure of the Strait of Hormuz. Average Bonny Light crude prices rose from $68.05 per barrel in January and $72.33 in February to $106.09 in March, $126.71 in April and $112.63 in May.

Despite the strong export earnings, domestic crude supply to Nigerian refineries remained below expectations. According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, domestic crude supply dropped to 15.84 million barrels in May, while refineries recorded a combined intake of 17.92 million barrels.

Local refiners have continued to express concerns over inadequate crude supply, arguing that the situation undermines the Domestic Crude Supply Obligation provided under the Petroleum Industry Act.

The Dangote Petroleum Refinery recently accused the Federal Government and its agencies of frustrating its operations by failing to ensure adequate crude supply, an allegation the government has denied.

Also commenting on the issue, the Publicity Secretary of the Crude Oil Refinery Owners Association of Nigeria, Eche Idoko, said most modular refineries source crude directly from private oil producers rather than through government arrangements.

He urged the Federal Government to fully implement the Domestic Crude Supply Obligation to guarantee sufficient feedstock for local refineries and strengthen Nigeria’s refining capacity.