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Crude earnings fall by N3.18tn amid output surge

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Nigeria’s crude oil exports declined by N3.18tn in the first half of 2025 despite an increase in production volumes, the latest foreign trade statistics report from the National Bureau of Statistics has shown.

It was observed that while the Nigerian Upstream Petroleum Regulatory Commission reported a 12.7 per cent rise in crude oil output during the period, export earnings from crude fell by more than 11 per cent year-on-year.

Between January and June 2025, crude oil exports totalled N24.92tn, down from N28.10tn in the same period of 2024. This represents an 11.3 per cent decline in value, or a loss of N3.18tn.

Further analysis of the foreign trade data from the NBS by The PUNCH showed that in the first quarter of 2025, crude exports stood at N12.96tn, compared to N15.49tn in Q1 2024. The difference of N2.53tn amounts to a 16.3 per cent fall. By the second quarter, the decline was less steep: exports dropped from N12.61tn in Q2 2024 to N11.97tn in Q2 2025, a reduction of N642bn or 5.1 per cent.

The contribution of crude oil to total exports also weakened. In Q1 2024, crude accounted for 80.8 per cent of Nigeria’s exports, but by Q1 2025 this had dropped to 62.9 per cent, a decline of nearly 18 percentage points. The downward trend continued in Q2, with crude making up 52.6 per cent of exports, compared to 71.2 per cent in Q2 2024 — a decline of about 18.6 percentage points.

By contrast, non-crude oil exports surged. In H1 2025, they more than doubled to N18.43tn, compared with N8.79tn in H1 2024 — a growth of 109.6 per cent or an additional N9.64tn. Non-oil exports alone rose from N3.74tn to N6.21tn, an increase of N2.47tn or 66 per cent.

Overall trade also expanded. Total exports in H1 2025 reached N43.35tn, up from N36.89tn in H1 2024, reflecting a 17.5 per cent increase. Imports, on the other hand, rose by a slimmer margin of 6.9 per cent, from N28.72tn in H1 2024 to N30.71tn in H1 2025.

This contributed to an improved trade balance, which grew by 54.6 per cent, from N8.17tn in H1 2024 to N12.64tn in H1 2025. The PUNCH further observed that crude oil’s dominance in Nigeria’s export profile is being eroded, with its share sliding from 76.2 per cent in H1 2024 to 57.5 per cent in H1 2025.

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The development highlights a paradox in Africa’s largest oil producer where rising output has not translated into stronger export performance, raising questions about domestic absorption, global oil demand, and pricing conditions. The data suggest that while Nigeria is pumping more crude, weaker global prices, rising domestic utilisation, or both, may be weighing on export receipts.

Earlier in March 2025, The PUNCH reported that Nigeria’s 2025 budget could come under pressure as crude oil prices slipped below the government’s benchmark projection of $75 per barrel. The situation, compounded by a dip in average daily crude production, was also expected to impact local refineries, including the Dangote plant and others.

While global factors such as falling oil prices may have contributed to the decline in export earnings, the Nigerian National Petroleum Company Limited has been supplying crude to the Dangote Petroleum Refinery under a naira-for-crude arrangement — a move analysts say could be diverting some volumes away from international markets.

Earlier in June 2025, The PUNCH reported that the Federal Government sold crude oil valued at N219.38bn to the Dangote Petroleum Refinery in the first four months of 2025.

The government also earned $1.59m from crude oil exports in April 2025, during the period it suspended sales of domestic crude allocations to the Dangote refinery and local refiners. These details were contained in internal documents from the NNPCL, submitted at the Federation Account Allocation Committee meetings.

266.9m barrels crude

Nigeria pumped a total of 266.9 million barrels of crude oil between January and June 2025, according to figures obtained from the Nigerian Upstream Petroleum Regulatory Commission by The PUNCH. The data show that the country recorded higher output across all six months compared to the same period in 2024, when production stood at 236.7 million barrels.

In January 2025, crude production rose to 47.7 million barrels, higher than the 44.2 million barrels recorded in January 2024. February output also increased to 41 million barrels, up from 38.3 million barrels in the same month of the previous year.

The upward trend extended into March, where production climbed to 43.4 million barrels, a gain of more than 5 million barrels compared to 38.2 million barrels in March 2024. April saw output reach 44.6 million barrels, rising by nearly 6 million barrels from the 38.7 million barrels recorded in April the previous year.

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May’s figures showed a further improvement, with Nigeria producing 45 million barrels compared to 39.1 million barrels in May 2024. The highest year-on-year increase came in June, when production hit 45.2 million barrels, up from 38.1 million barrels a year earlier, a difference of about 7.1 million barrels.

Overall, the first half of 2025 saw crude production rise by 30.2 million barrels compared with the same period in 2024, representing a growth rate of 12.7 per cent. When condensates are included, total liquid output for the period reached 303.2 million barrels, compared to 275 million barrels recorded in the first half of 2024.

Industry watchers say the steady increase in crude production reflects improved operating conditions in the oil sector, though they caution that challenges such as pipeline vandalism, theft, and underinvestment continue to pose risks.

However, the NUPRC earlier revealed a 50.2 per cent reduction in crude oil losses during the first seven months of 2025. In a recent statement by the Head of Media and Strategic Communications at NUPRC, Eniola Akinkuotu, it was noted that between January and July 2025, the country lost 2.04 million barrels of crude oil, averaging 9,600 barrels per day, which is the lowest level since 2009 when losses were recorded at 8,500 barrels per day.

The current figures represent a 94.57 per cent drop from the losses experienced in 2021. The statement read, “Between January and July 2025, crude oil losses were contained at 2.04 million barrels, averaging 9,600 barrels per day over the seven-month period. This marks a clear departure from the high-loss years that have long plagued the industry.

“By comparison, the entire 2024 calendar year recorded 4.1 million barrels lost at a daily average of 11,300 barrels. Remarkably, in just the first seven months of 2025, losses were cut by 50.2 per cent, with only 2.04 million barrels lost over the period.

“The figures for the period ending July 2025 also represent a dramatic 94.57 per cent drop in crude oil losses compared to the full year of 2021, when Nigeria lost a staggering 37.6 million barrels at a daily average of 102,900 barrels.”

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According to the statement, the progress was made possible by a combination of effective regulatory measures and collaboration with security agencies, oil operators, and local communities.

The NUPRC’s metering audit, aimed at ensuring accurate measurements of production and exports, has played a pivotal role in reducing discrepancies. NUPRC’s success is also attributed to the implementation of the Petroleum Industry Act in 2021, which has significantly contributed to the downward trend in oil losses.

Also, the commission has adopted both kinetic and non-kinetic strategies to tackle the issue, continuing to work closely with stakeholders in the oil sector to ensure the country’s resources are better protected.

Earlier in June 2025, the Executive Coordinator of the Independent Petroleum Producers Group, Oyeleke Banmeke, said that crude oil theft in Nigeria has reduced significantly compared to figures recorded about two to three years ago.

Banmeke commended the current administration of President Bola Tinubu for improvements in security along the country’s oil-producing corridors, particularly in the Niger Delta.

Speaking earlier on the likely impact of crude oil prices on government revenue, an Energy Professor at the Lagos State University, Dayo Ayoade, said the drop in crude production prices would affect the budget adversely, though it would bring down fuel prices.

Ayoade also said that the government must do its best to achieve two million barrels per day, or the refineries will have to resort to imports, which may impact the fuel prices.

Similarly, Professor Adeola Adenikinju of the Department of Economics at the University of Ibadan argued that the decline in crude oil prices is like a two-edged sword. He said it would lower the prices of refined products, such as PMS.

“But macroeconomically, it’s going to have implications, especially for government revenue, simply because the two critical assumptions, you know, that would change the budget were the oil price and oil volume. So, if oil prices go down and persist, then that will mean that budget implementation will be very difficult,” he said.

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NAFDAC destroys N8bn products, targets sachet alcohol in N’Central

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The National Agency for Food and Drug Administration and Control (NAFDAC) has confiscated and destroyed unwholesome, banned, fake and adulterated products worth more than N8 billion in the North-Central states.

Speaking during the destruction ceremony on Thursday in Lafia, the Nasarawa State capital, the Director-General of NAFDAC, Prof. Mojisola Adeyeye, said the products were seized from manufacturing outfits, sales outlets, markets and motor parks across the zone.

The DG, who was represented by a Deputy Director of NAFDAC in the zone, Joseph Edor, said most of the confiscated products were banned alcoholic beverages in small volumes of less than 200 ml (20 cl).

According to her, NAFDAC was established by Decree No. 19 of 1993, as amended, with the mandate to protect and promote public health by ensuring that only quality, efficacious and regulated products are manufactured, imported, distributed and sold in Nigeria.

She explained that the agency banned alcoholic beverages in sachets and glass bottles of less than 200ml due to their availability, affordability and portability, which have made them easily abused by youths and underage schoolchildren.

“Research has shown that early exposure to alcohol affects the brain and other vital organs such as the liver and kidneys.

“It stymies the brain, resulting in mental retardation, brain damage, poor performance of pupils in school, low productivity and several types of illnesses,” she said.

The DG said the ban and subsequent raids were based on these abuses, addiction and adverse health effects, while other seized items included expired, fake and unwholesome food, drugs and cosmetics.

“It is in the course of carrying out these activities that this heap of unwholesome, banned, fake and adulterated products worth about eight billion naira was confiscated from manufacturing outfits, sales outlets, markets and motor parks.

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“The bulk of the products in that pile are predominantly banned alcoholic beverages in low volumes of less than 200ml (20cl),” she emphasised.

The Director-General further commended other law enforcement agencies, sister agencies and stakeholders for their continuous collaboration, especially in intelligence sharing and security cover during operations.

Also speaking at the event, the Nasarawa State Coordinator of NAFDAC, Dr Gyani Stephen, explained that the exercise was not targeted at hurting people but was intended to save lives.

He advised those in the habit of selling fake and banned products to desist or be ready to face the full wrath of the law, warning that the agency would come after them if they did not change their ways.

In his goodwill message, the Nasarawa State Commander of the National Drug Law Enforcement Agency, Daniel Saidu, represented by Yakubu Awoh, commended NAFDAC for saving lives through the regular seizure and destruction of expired and fake drugs.

He explained that if these dangerous products were allowed into the markets, they could have destroyed millions of lives and affected the mental health of many others.

Source: punchng.com

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Seven modular refineries to begin operations in 2027, read details

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Nigeria’s modular refining sector is expected to expand next year, with seven new refineries projected to commence operations with a combined capacity of 83,000 barrels per day, according to Argus Media’s George Maher-Bonnett.

Maher-Bonnett disclosed this in Lagos on Wednesday during a presentation at the OTL Africa Downstream conference, where he highlighted the changing dynamics of Nigeria’s petroleum products market amid rising local refining capacity and declining fuel demand.

In his presentation, titled ‘African Energy Outlook’, Maher-Bonnett said four modular refineries operated in Nigeria in September, with a combined capacity of 32,000 barrels per day.

“Four modular refineries operating in September, total 32,000 b/d capacity,” he said.

He added, “Seven new modular refineries to start next year“ with a total of 83,000 barrels per capacity.

The projected additions would represent more than two and a half times the combined capacity of the four modular refineries operating in September, potentially increasing the contribution of smaller refining facilities to Nigeria’s domestic petroleum products supply.

However, the presentation did not identify the seven proposed refineries, their owners or locations, or provide individual capacity figures and commissioning schedules.

Maher-Bonnett also highlighted the growing role of the Dangote Petroleum Refinery in improving Nigeria’s self-sufficiency in petroleum products, despite a decline in fuel demand during the year.

“Nigerian fuels demand is down this year,” the presentation stated, attributing the development to “higher flat prices.”

He added self-sufficiency is improving with Dangote ramp-up, projecting that modular refineries would play a growing role.

The presentation linked the decline in demand to higher prices and noted that the only government intervention during the period covered was an NNPC price reduction.

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“No government interventions, besides NNPC price cut this month,” it stated.

The expected expansion of modular refining capacity comes as Nigeria’s petroleum products market adjusts to increased domestic production and changing international trade flows.

Maher-Bonnett said the Dangote refinery is operating at a high rate, with steady petrol output, reducing the attractiveness of importing some petroleum products from Europe into West Africa.

“Dangote’s 700,000 bpd Lekki refinery is running hard, gasoline output is steady,” the presentation stated.

It also highlighted Ghana’s growing refining capacity, noting that the 45,000-barrel-per-day Tema refinery is ramping up production and improving the country’s self-sufficiency.

According to the presentation, the economics of shipping petroleum products from Europe to West Africa and from Europe to the United States has weakened, with freight costs further affecting the competitiveness of the routes.

Source: punchng.com

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Falana tasks Senate on recovery of $123bn, N66bn oil funds, read details

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Human rights lawyer, Femi Falana, has asked the National Assembly to compel the recovery of $123.17bn in alleged outstanding oil royalties, taxes and dividends, alongside N66.4bn, from the Nigerian National Petroleum Company Limited and other oil and gas companies.

In a letter dated 28 October, 2026, and titled ‘Request to Recover Dividends, Taxes and Royalties Worth $123.17bn and N66.4bn from NNPC and Other Companies and Remit Same to the Federation Account’, Falana urged the National Assembly to ensure that the alleged outstanding revenues were recovered and remitted to the federation account.

He warned that he would institute legal proceedings at the Federal High Court if the authorities failed to initiate measures to recover the funds within 14 days of receiving the letter.

In an acknowledged copy of the letter made available to The PUNCH on Thursday, the senior advocate said the outstanding revenues covered several categories, including $62bn in unpaid oil royalties, $23.1bn in alleged unremitted dividends from Nigeria LNG Limited, $6.071bn in outstanding industry revenues, and claims relating to stolen crude oil and refinery rehabilitation contracts.

The letter also cited a Supreme Court consent judgment delivered on 20 October, 2018, which it said directed the Federal Government to collect outstanding royalties accrued over 18 years under the Deep Offshore and Inland Basin Production Sharing Contracts Act.

According to Falana, the governments of Akwa Ibom, Bayelsa and Rivers states had approached the Supreme Court to compel the Federal Government to enforce the law, which provided for an upward review of royalties when international crude oil prices exceeded $20 per barrel.

He said a committee constituted by the Office of the Attorney-General of the Federation subsequently determined that $62bn in royalties had not been collected from international oil companies.

Falana added that Akwa Ibom and Rivers states later obtained a Federal High Court judgment for a combined $3.3bn, while Bayelsa State secured a separate judgment for $951m over their alleged entitlements from the outstanding royalties.

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He said the Federal Government had yet to comply with the judgments.

The lawyer also called for the recovery of $29bn linked to alleged crude oil theft and undeclared exports, citing investigations by the Nigerian Maritime Administration and Safety Agency and the House of Representatives.

He said lawyers engaged by NIMASA discovered that about 60.2 million barrels of crude oil, valued at $12.7bn, allegedly stolen from Nigeria, were discharged at the Port of Philadelphia in the United States between 2011 and 2014.

According to the letter, the lawyers submitted their findings to the Office of the Attorney-General after which they filed nine civil cases at the Federal High Court in Abuja and Lagos to recover the value of the alleged stolen crude oil and liquefied gas.

Falana further cited a 2016 House of Representatives ad hoc committee investigation, which he said found that $17bn worth of crude oil and liquefied natural gas had been exported from Nigeria without proper records.

He said the committee found that the crude oil was discharged at the ports of Houston and Lake Charles in the United States.

He urged the National Assembly to direct the Economic and Financial Crimes Commission to pursue the recovery of the funds from the companies allegedly involved.

On the NLNG dividends, Falana alleged that NNPC had failed to remit $23.1bn due to the Federal Government from its 49 per cent shareholding in NLNG.

He explained that NLNG, established in 1989, had paid more than $47bn in dividends to its shareholders over 26 years, with the Federal Government’s share paid through NNPC.

The other shareholders listed in the letter are Shell, with 25.6 per cent; TotalEnergies, 15 per cent; and Eni International, 10.4 per cent.

Falana argued that the dividends received by NNPC on behalf of the Federal Government should have been transferred to the Federation Account in accordance with Section 162 of the 1999 Constitution, as amended.

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He added that resolutions of the Senate and the House of Representatives calling for the remittance of the funds had allegedly been ignored.

The senior advocate also called for the recovery of $6.071bn and N66.4bn in outstanding revenues owed by oil and gas companies, citing the Nigerian Extractive Industries Transparency Initiative’s 2022/2023 Independent Oil and Gas Industry Report.

According to him, NEITI disclosed on 27 September, 2024, that the outstanding collectible revenues due to the Federal Government as of June 2024 stood at the stated amounts.

He said copies of the report were forwarded to both chambers of the National Assembly in November 2024 in line with the provisions of the NEITI Act.

Falana urged lawmakers to support NEITI in recovering the outstanding revenues without further delay.

The letter also questioned the outcome of the rehabilitation of the Port Harcourt, Warri and Kaduna refineries, for which the Federal Executive Council approved contracts totalling about $2.98bn in 2021.

It said the government approved $1.5bn for the rehabilitation of the Port Harcourt refineries in April 2021 and another $1.48bn for the Warri and Kaduna refineries in August of the same year.

Falana argued that NNPC announced in December 2024 that the Port Harcourt and Warri refineries had been substantially completed, while work on the Kaduna refinery was almost finished.

However, he cited NNPC’s subsequent announcement that the Warri refinery ceased operations on 25 January, 2025, following safety issues involving its crude distillation unit main heater. He also referred to the shutdown of the Port Harcourt refineries for planned maintenance in May 2025.

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He argued that the contractors had breached the terms of the rehabilitation agreements and called for the recovery of the contract sums.

“In view of the foregoing, we are compelled to request the Office of the Attorney-General to recover the total sum of $123.17bn and N66.4bn owed the Government of the Federation by the Nigerian National Petroleum Corporation Limited, and some oil and gas companies operating in Nigeria,” the letter stated.

Falana said recovering the funds would reduce the Federal Government’s dependence on external borrowing and provide additional revenue for the federation and the states.

He warned that failure to begin recovery measures within 14 days would prompt legal action.

“If you fail to initiate legal measures for the recovery of the aforesaid huge funds belonging to the Government of the Federation within 14 days of the receipt of this letter, we shall not hesitate to file the necessary processes in the Federal High Court with a view to compelling you to discharge the duty of your office,” he wrote.

Falana also defended his firm’s standing to pursue the matter, citing its involvement in drafting and submitting a bill to amend the Deep Offshore and Inland Basin Production Sharing Contracts Act in 2017.

He noted that the bill was adopted and sponsored by a senator, subsequently passing first reading in the Senate before the dissolution of the Eighth National Assembly. According to him, the Ninth National Assembly subsequently adopted and passed the amendment.

He recalled that the then President of the Senate, Ahmad Lawan, had said the amendment would increase the country’s revenue by at least $1.5bn annually.

Source: punchng.com

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