Nigeria’s Crude Exports Generate N20tn Despite Production Challenges

Nigeria’s oil sector experienced a significant financial boost during the first five months of 2026, with crude oil exports generating approximately N20.22tn. This surge in revenue was driven primarily by a sharp rise in international oil prices, which successfully offset a moderate decline in the total volume of crude exported compared to the previous year.

Between January and May 2026, the country exported an estimated 148.9 million barrels of crude oil. Although this represents a 3.3 per cent decrease in volume compared to the same period in 2025, the total export value climbed by nearly 30 per cent, reaching $14.66bn. Market analysts attribute this price growth largely to the ongoing conflict between the United States and Iran, which caused global crude prices to spike, particularly between March and May.

Total crude oil production for the five-month period reached 216.85 million barrels. While average daily production figures showed signs of improvement, rising from 1.46 million barrels per day in January to 1.53 million in May, the high percentage of crude diverted to the international market has intensified domestic concerns. With roughly 68.7 per cent of production being exported, local refiners including the Dangote Petroleum Refinery have continued to voice concerns regarding the scarcity of domestic feedstock.

These refiners argue that prioritizing exports complicates their ability to maintain operations and meet local fuel demands, contending that the current supply situation hinders the effectiveness of national petroleum regulations.

As the government continues to weigh the benefits of increased foreign exchange earnings against the necessity of supporting local refining capacity, the energy sector remains focused on balancing international obligations with the push for domestic energy security.