Nigeria generated $31.54 billion from crude oil exports in 2025, reflecting a significant decline in oil earnings despite increased production levels during the year.
According to data from the Central Bank of Nigeria (CBN)’s Balance of Payments report, crude oil export revenue fell from $36.85 billion in 2024 to $31.54 billion in 2025, representing a $5.31 billion drop or 14.41% year-on-year decline.
Decline Despite Higher Production
Interestingly, the drop in earnings occurred even as Nigeria recorded higher crude oil production in 2025.
- Total crude output reached 530.41 million barrels in 2025
- This was higher than 408.68 million barrels in 2024
However, production still fell short of government targets and OPEC quotas for most of the year, limiting the country’s ability to fully capitalize on global oil prices.
Impact on Nigeria’s External Position
The decline in crude oil earnings had a direct effect on Nigeria’s external finances:
- Current account surplus dropped to $14.04 billion in 2025, down from $19.03 billion in 2024
- Overall balance of payments surplus also declined to $4.23 billion
This highlights how heavily Nigeria’s external stability still depends on crude oil revenues.
Shift in Export Structure
While crude oil earnings declined, other components of Nigeria’s energy exports showed growth:
- Gas exports rose from $8.66 billion to $10.51 billion (up 21.36%)
- Refined petroleum exports emerged at $6.13 billion, supported by increased domestic refining capacity
This suggests a gradual shift in Nigeria’s hydrocarbon export mix, with gas and refined products playing a larger role.
Bigger Economic Context
Despite ongoing diversification efforts, crude oil remains Nigeria’s dominant export:
- It continues to be the largest source of foreign exchange earnings
- The economy remains highly vulnerable to oil price fluctuations and external shocks
At the same time, non-oil exports are growing, indicating a slow but important transition toward a more diversified export base.
