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Five-month crude oil exports fetch Nigeria N20tn

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Nigeria exported an estimated 148.9 million barrels of crude oil valued at about N20.22tn in the first five months of 2026, showcasing the scale of the country’s oil trade despite persistent concerns over production levels.

The crude barrels were exported by both international and indigenous oil companies, including the Nigerian National Petroleum Company Limited.

While the export of crude oil may lead to a lack of sufficient domestic feedstock for Dangote Petroleum Refinery and other local refineries, it boosts the country’s foreign exchange earnings.

An analysis of crude oil production and export data for January to May 2026 showed that the country’s crude exports were worth approximately $14.66bn, equivalent to N20.22tn at an exchange rate of N1,380 to the dollar.

In comparison, Nigeria exported 154 million barrels of crude worth about $11.32bn during the same period of 2025. Although export volume in 2026 fell by 5.1 million barrels, representing a 3.3 per cent decline, the export value jumped by about $3.33bn, or 29.5 per cent, driven by significantly higher crude oil prices this year.

The figures obtained from the Central Bank of Nigeria indicate that the total volume of crude oil produced by the country during the five-month review period in 2026 was 216.85 million barrels, with a gross market value of approximately $21.28bn, or about N29.36tn, using the same exchange rate.

The calculations were derived from the average daily crude oil production and export volumes for each month, multiplied by the number of days in the respective months, and valued using the corresponding average monthly Bonny Light crude oil prices.

A breakdown of the CBN figures showed that Nigeria produced about 45.26 million barrels in January, 36.68 million barrels in February, 42.78 million barrels in March, 44.70 million barrels in April, and 47.43 million barrels in May.

Crude exports followed a similar trend, with 31.31 million barrels exported in January, 24.08 million barrels in February, 28.83 million barrels in March, 31.20 million barrels in April, and 33.48 million barrels in May.

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Using the prevailing average crude prices for each month, January’s exports were valued at about $2.13bn, February $1.74bn, March $3.06bn, April $3.95bn, and May $3.77bn, bringing the cumulative export value to $14.66bn.

On the production side, crude output was valued at approximately $3.08bn in January, $2.65bn in February, $4.54bn in March, $5.67bn in April, and $5.34bn in May, resulting in a cumulative value of $21.28bn.

The data further showed that average daily crude oil production improved over the review period. Output increased from 1.46 million barrels per day in January to 1.53 million barrels per day in May after dropping to 1.31 million barrels per day in February.

Average daily crude exports also rose from 1.01 million barrels per day in January to 1.08 million barrels per day in May, despite recording 0.86 million barrels per day in February.

Overall, Nigeria exported about 68.7 per cent of the crude oil it produced during the five months, leaving roughly 67.95 million barrels available for domestic refining, storage, operational use, and inventory adjustments.

The effect of the US-Iran war was also felt in the monthly average prices of crude from March to May. In January and February, before the war started, average crude prices were $68.05 and $72.33 a barrel. But the prices jumped to $106.09 in March, $126.71 in April, and $112.63 in May, reflecting the sharp rise in crude prices due to the closure of the Strait of Hormuz.

The estimated values represent the gross market value of the crude oil based on average monthly international crude prices and do not reflect actual government revenue, which is affected by production-sharing contracts, royalties, taxes, operational costs, domestic crude supply obligations, and other commercial arrangements.

Year-on-year comparison

Meanwhile, Nigeria’s crude oil export earnings rose by almost 30 per cent in the first five months of 2026 despite a decline in export volumes, as higher international oil prices more than offset the lower shipments.

While the country exported an estimated 148.9 million barrels of crude oil during the period, approximately 154.0 million barrels were exported in the corresponding period of 2025.

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The figures indicate that crude export volumes declined by about 5.1 million barrels, representing a 3.3 per cent year-on-year decrease. Average daily crude exports also dropped from 1.02 million barrels per day in the first five months of 2025 to 0.984 million barrels per day during the same period in 2026, a decline of 3.5 per cent.

Despite the lower export volumes, the estimated value of Nigeria’s crude oil exports surged to about $14.66bn between January and May 2026 from approximately $11.32bn recorded during the corresponding period of 2025.

This represents an increase of about $3.34bn, or 29.5 per cent, within one year. This highlighted the effect of the US-Iran conflict on crude prices this year.

At an exchange rate of N1,380 to the United States dollar, the estimated value of crude exports for the first five months of 2026 translates to approximately N20.22tn, compared with about N15.62tn in the same period of 2025.

The analysis showed that the increase in export earnings was driven largely by stronger international crude oil prices rather than higher export volumes.

Although Nigeria exported fewer barrels in 2026, the significantly higher crude oil prices, particularly in March, April, and May, boosted the overall market value of the country’s crude exports.

Domestic crude supply to Nigeria’s refineries declined to 15.84 million barrels in May 2026, even as the facilities achieved a combined intake of 17.92 million barrels for the month, according to the latest midstream and downstream statistics released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

Across the first five months of the year, domestic supply to refineries had shown a generally upward trend, rising from 8.83 million barrels in January and 8.86 million barrels in February to 11.49 million barrels in March, before peaking in April and moderating in May.

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As oil producers make money from high oil export volumes, local refiners said this was against the domestic crude supply obligation of the Petroleum Industry Act.

The Dangote refinery has recently accused the Federal Government and its agencies of alleged deliberate sabotage, undermining its operations and frustrating its investment in Nigeria’s downstream petroleum sector, an allegation the Federal Government denied.

In a recent affidavit filed before the Federal High Court in Lagos seeking an interim injunction to stop the issuance and renewal of petroleum import licences, the company said its operations are anchored on crude oil supply arrangements with the Nigerian National Petroleum Company Limited, which it described as central to its refining business.

The refinery said its business operations include purchasing crude oil from the Federal Government through the NNPC and refining products for sale to Nigerians to ease pressure on the government to make petroleum products available for local consumption.

The refinery, however, alleged that the government had failed in its obligation to ensure adequate crude supply to local refineries, claiming the development was deliberate and harmful to its investment.

Speaking with our correspondent, the publicity secretary of the Crude Oil Refinery Owners Association of Nigeria, Eche Idoko, said modular refineries did not receive crude from the Federal Government but from private oil producers.

“None of the modular refineries I know have gotten crude under the Federal Government arrangement. But I know that through private arrangements, the Edo refinery is getting it from Ingenti. Aradel is getting crude from EOP and a couple of other fields, too. Opac is getting from Pillar,” he said in a chat on Sunday.

Idoko appealed to the Federal Government to effectively implement the DSCO and make enough crude available to local refineries.

punch.ng

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Read how Nigerians tap savings, loans to buy Dangote refinery shares

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Some Nigerians seeking to invest in the Dangote Petroleum Refinery and Petrochemicals FZE Initial Public Offering have turned to personal savings, loans and proceeds from the sale of assets to raise funds to buy shares, Saturday PUNCH has learnt.

Findings by our correspondents revealed strong interest in the shares among prospective retail investors, some of whom said they expected the investment to yield substantial returns in the future.

While some respondents said they were dipping into savings or raising funds through other means, others said the prevailing economic hardship had made it difficult for them to participate in the offer.

The refinery opened its IPO on Monday, September 14, giving Nigerians an opportunity to own equity in the company.

The offer comprises 4.1 billion ordinary shares priced at N525 each, with the company targeting about N2.15tn to part-fund an expansion that would nearly double the refinery’s capacity to 1.4 million barrels per day.

The minimum subscription is 10 shares, costing N5,250.

Dangote Group Chief Executive Officer, Aliko Dangote, said the low entry threshold was deliberately set to allow ordinary workers, including drivers, cooks and domestic staff, to become shareholders, describing the offer as “the IPO for the people.”

The offer is expected to close on October 13.

Investors turn to savings, loans

A staff member of the Federal Ministry of Works, David Adelabu, described the shares as expensive for struggling civil servants but said he considered the offer an opportunity to become a shareholder in the refinery.

He said, “I have small shares in some companies, including Glo and MTN, but Dangote’s shares will be the highest I will be buying. It is on the high side, but I feel this is an opportunity to become a shareholder in Dangote.

“I understand that the dividends are not going to be immediate, but I don’t mind even if it will entail selling a plot of land I have in Metumbi here in Minna. I will gladly do so.”

A trader in Dutse, Jigawa State, Adamu Bala, said he planned to use savings from his business to buy the shares.

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“I will not sell my house. I will use a small profit from my shop to buy,” he said.

Similarly, a civil servant, Fatima Mannir, said women in her group had started raising money through contributions, known as adashe, to participate in the offer.

“We have started raising money through adashe,” she said.

A trader in Damaturu, Yobe State, Malam Musa Ibrahim, said he invested part of his business savings after learning about the offer.

“I am using part of the money I have saved from my business.

“I believe that if I can invest a small amount now, it may become useful to me in the future. But I am also being careful because business is not easy at the moment,” he said.

Another resident, Aisha Mohammed, said she raised money by cutting down on some household expenses.

“I did not borrow money to buy the shares. I have been saving little by little, and when I heard about the offer, I decided to use part of what I had saved,” she said.

A businessman, Abdullahi Yusuf, however, said he obtained financial assistance from a friend to increase his subscription.

“I wanted to buy more shares than what my savings could afford, so I discussed it with a friend who agreed to lend me some money.

“I know that borrowing money to invest carries risks, but I am hoping that the investment will perform well. I will repay the money from my business income,” he said.

A petty trader, Hauwa Lawan, said she sold some personal belongings she no longer used and added the proceeds to her savings to finance her purchase.

“I sold some things that I was no longer using and added the money to my savings,” she said.

A farmer, Mallam Abdullahi Adamu, said he sold farm produce to raise about N500,000 to invest in the shares.

In Kano State, an investor, Abdulmalik Ibrahim, said he bought 10 shares for N5,250 using personal funds.

Hardship keeps some investors away

While some Nigerians are finding ways to participate in the IPO, others said economic pressures had put the investment beyond their reach.

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A civil servant in Kogi State, Saliu Joseph, said he would have loved to invest but had just paid his children’s school fees.

“Right now, I don’t think I can afford to participate unless a miracle happens,” he said.

A retired permanent secretary in the state, Bola Boro, also said he would not participate because he could not afford the investment at the moment.

“As a retired civil servant, I cannot afford such an amount to invest in the offer. Even though I am a fan of investment through the stock market, which I have been doing for years, I don’t think it will be convenient for me to participate considering the time frame of just one month,” he said.

A civil servant, Kuta Abdulahi, said the financial demands of his children’s education had left him unable to participate in the share offer.

“I must tell you the truth, I know about the Dangote Refinery shares, but I cannot even think of it at this time. My children are just resuming a new term in school. Where will I get the money for their school fees before thinking of buying shares? Please, I have a lot on my head,” he said.

Similarly, a vulcaniser, Ahmed Alkali, said his income was barely enough to meet his family’s basic needs, making investment in shares difficult.

“With the kind of job I do, I am working from hand to mouth. So, how can I buy shares when I have not eaten?” he asked.

Experts warn against borrowing

Investment experts, however, cautioned Nigerians against taking loans, selling properties or committing all their savings to the IPO, warning that equity investments carry risks.

Speaking with Saturday PUNCH, the Group Managing Director of Lancelot Group, Adebayo Adeleke, urged prospective investors to understand the risks associated with the capital market before committing their funds to the IPO.

Adeleke, who is also a former Secretary of the Independent Shareholders Association of Nigeria, said capital market investments should be made with funds that investors could afford to leave untouched for the long term, noting that equities were unsuitable for people struggling to meet immediate financial needs.

He said, “When you buy shares, you are buying a portion of the ownership of the business. Investment takes a lot of time to pass through gestation, to stability, to profitability. And you cannot, with any degree of certainty, predict when the company is going to turn the corner and begin to produce profits.

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“So, investment money is not the money you are likely to need in the next two months, three months, six months, even one year. If you cannot part with your money for a minimum of three to five years, the capital market is not the place to invest.”

Adeleke, however, described the IPO as a strategic investment, citing the refinery’s scale and demand for its products.

Also speaking, the Head of Financial Institutions Ratings at Agusto & Co., Ayokunle Olubunmi, urged Nigerians to consider the risks associated with the investment and avoid committing all their savings to the offer.

He said, “There are plenty of risks to this business. It’s not risk-free. Things can get worse for the business. Valuation is based on expectations of what will happen in the future. Things might not go as planned. And, like we all know, equity is a risky business.”

Olubunmi particularly cautioned prospective investors against selling property or using up all their savings to invest in the offer.

He advised them to invest only a portion of their funds and diversify their portfolios.

The expert also advised those considering taking loans to buy the shares to have a separate and reliable repayment plan rather than depending on returns from the investment.

The Emir of Kano, Muhammadu Sanusi II, had earlier warned prospective investors against using their children’s school fees or selling their homes to invest in the shares.

Sanusi, who gave the warning on Thursday while speaking at the company’s roadshow in Kano, urged prospective investors to invest only money they could afford to set aside for some time, suggesting amounts such as N10,000, N20,000 or N30,000.

Source: punchng.com

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ARE NIGERIANS BUILDING CHINA’S ECONOMY WHILE NEGLECTING THEIR OWN?

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While other nations are busy producing, manufacturing and exporting, Nigeria must ask itself a difficult question: Are we building our own economy, or simply creating a bigger market for other countries?

Nigeria has a huge population, abundant natural resources and a massive consumer market. Yet the country continues to depend heavily on imported finished products—from electronics and clothing to machinery, household goods and other consumer items.

The issue is not simply about Chinese businesses or businesses from any other foreign country operating in Nigeria. Foreign investment can bring capital, technology, jobs and expertise.

The bigger issue is whether **Nigerian businesses are being given the opportunity and support to manufacture competitively at home.

Instead of remaining primarily a consumer of finished products, Nigeria needs to strengthen its manufacturing sector and move further up the value chain.

Nigeria needs to produce, not just consume.

A stronger manufacturing economy could help Nigeria:

* Create more jobs for Nigerians
* Add value to locally available raw materials
* Develop industrial skills and technology
* Reduce excessive dependence on imported finished goods
* Build competitive Nigerian companies
* Increase the country’s ability to export

The goal should not be to drive legitimate foreign businesses out of Nigeria. The goal should be to build an economy where **Nigerian manufacturers can compete, grow and eventually take Nigerian-made products to markets around the world.

The question Nigerians should be asking is simple:

**Why should Nigeria remain one of the world’s biggest markets for finished products when we have the potential to manufacture many of them ourselves?

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🇳🇬 **Nigeria must move from being predominantly a consumer nation to becoming a stronger producer, manufacturer and exporter.

What do you think?

Which products should Nigeria prioritize for local manufacturing instead of relying heavily on imports?

Share your thoughts in the comments.

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ICRC defends toll pricing on highways

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The Infrastructure Concession Regulatory Commission has defended the toll pricing structure under the Highway Development and Management Initiative, saying charges are evaluated against the quality and benefits of the upgraded roads.

In a statement made available to PUNCH Online on Thursday, the Director-General, Dr. Jobson Ewalefoh, cited the 227-kilometre Akwanga–Makurdi road corridor as an example.

He said the route has four toll gates, and motorists pay as they travel along it.

He argued that toll payments should be viewed against the previous costs imposed by the poor condition of the road, including lost man-hours, vehicle damage and accident risks.

Feedback from road users, he said, shows many motorists are willing to pay tolls where they see clear improvements in road quality.

Some drivers have expressed support for similar arrangements on other major corridors if the roads are upgraded to the same standard.

“That, to me, is the beauty of a well-structured PPP,” Ewalefoh said.

He explained that negotiators carefully consider toll pricing to keep charges fair. A portion of the revenue is set aside specifically for road maintenance. Under the concession agreements, the government does not bear additional maintenance costs for the duration of the contract.

The government must repair potholes within 48 hours, and it funds major routine repairs from the dedicated toll revenue.

Source: punchng.com

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