Nigeria’s crude oil export earnings fell by 17% in the first two months of 2025, totaling $6.68 billion. This decline was largely due to falling global oil prices, despite an increase in local production.
According to data from the Central Bank of Nigeria (CBN), the average price of Bonny Light, Nigeria’s main crude oil grade, dropped to $78.93 per barrel in January and February 2025, compared to $84.13 per barrel during the same period in 2024, a 6% decrease year-on-year.
Despite a 23% increase in average daily oil production, which rose to 1.7 million barrels per day from 1.38 million barrels per day in early 2024, the earnings still fell. The decline was mainly driven by a sharp dip in February’s performance.
In January 2025, oil export revenue slightly rose to $3.86 billion from $3.79 billion in January 2024. However, February 2025 saw a significant 34% year-on-year drop, falling to $2.82 billion from $4.27 billion in February 2024.
The CBN’s February report attributed the decline to both a drop in oil prices and reduced domestic output. Additionally, gas export earnings also slipped by 0.84% in February to $530 million, down from $540 million in January.
The drop in oil revenue comes at a time when Nigeria is facing fiscal challenges, putting more pressure on government earnings and foreign exchange reserves.