Nigeria’s oil trade deficit hits 27-year record N4.5tr

Value of petroleum export revenue drops to $41.8b
Nigeria posted a current account deficit of $15.5 billion (N4.5 trillion) in 2015 compared with a surplus of $1.3 billion it recorded in the previous year. It represents the highest in 27 years.

At the global level, members of the Organisation of Petroleum Exporting Countries (OPEC) collectively suffered a current account deficit of $99.6 billion in the same period compared with $237 billion in 2014.

A current account deficit means the value of imports of goods, services and investment incomes is greater than that of exports. It is sometimes referred to as a trade deficit.

According to the report, the value of Nigeria’s petroleum export revenue also declined from $77.5 billion in 2014 to $41.8 billion in 2015.OPEC, which made this disclosure in its 2016 Statistical Bulletin released on Wednesday, noted that the last time the cartel recorded a current account deficit was in 1998.

It stated: “In 2015, OPEC petroleum export revenues fell by 45.8 per cent from 2014 to $518.2 billion, marking the lowest level seen since 2005. Total OPEC posted a current account deficit of $99.6 billion in 2015 compared with a surplus of $238.1billion in 2014. Notably, the last time OPEC recorded a current account deficit was in 1998. In value, total OPEC exports declined by 29.1 per cent year-on-year, while total imports fell 8.7 per cent.”

Nigeria’s gross gas produced dropped from 86.4 million standard cubic meters in 2014 to 85.3 million in 2015.Out of the quantity produced, the country marketed about 45.2 million standard cubic meters; flared 9.7 million; re-injected about 21million and shrank 9.4 million.

OPEC put Nigeria’s natural demand at 18.5 million standard cubic meters. The report named Europe, North America, Asia and Pacific, Latin America, and Africa as the five major destination of Nigeria’s crude oil export in 2015.

In 2015, Nigeria exported 992,300 barrels per day to Europe: 83,600 bpd to North America; 550,300 bpd to Asia and Pacific; 209,100 bpd to Latin America and 278,700 bpd to fellow African countries.

Nigeria, therefore, exported a total of 2.114 million barrels per day in 2015.At the global level, all OPEC members exported a total of 23.6 million bpd in the year under review.

In respect to exports of petroleum product, Nigeria recorded 18,000 bpd to North America, 11,300 bpd and Asia and Pacific, 5,700bpd.Total OPEC crude oil exports stood at 23.6m bpd in 2015, up slightly from 23.2m bpd in 2014. This increase represents 1.7 per cent growth.

It noted that the bulk of OPEC crude oil was exported to the Asia Pacific region at a volume of 14.5m bpd or 61.5 per cent. “Significant volumes were also exported to Europe, which increased its imports from OPEC member countries (MCs) to 4.2m bpd in 2015, from 4m bpd in 2014. North America imported 2.8m bpd of crude oil from OPEC MCs, 10.6 per cent less than during 2014.”