Nigerian Government Advised to Leverage Crude Oil Export Growth to Boost Economy

Strategic Insights -

The Federal Government of Nigeria has been urged to capitalize on the growth of crude oil exports to secure larger markets and mitigate the impact of a 15% tariff imposed by the US on Sub-Saharan Africa. The call was made by the Port Harcourt Chamber of Commerce, Industry, Mines, and Agriculture (PHCCIMA) in its quarterly economic review, which highlighted the need for Nigeria to tap into the potential of the African Continental Free Trade Area (AfCFTA) market, valued at $10 trillion. The report also emphasized the importance of increasing crude oil production to 1.8 million barrels per day to drive negotiations for enhanced upstream security operations.

Key Takeaways:

  • The PHCCIMA expects crude oil exports to motivate increased production from 1.4 million barrels per day to 1.8 million barrels per day.
  • Crude oil has remained the cornerstone of Nigeria's exports in Q2, accounting for 53% of total export earnings.
  • Non-oil exports, including manufactured goods, agriculture, solid minerals, and processed foods, contributed 13.39% to total exports in Q2.
  • The weaker naira has made Nigerian products cheaper and competitive overseas, boosting the demand for these products.
  • Nigeria's agricultural exports have increased by 20% in 2025, with a sharp rise in exports of raw shea nuts, kola nuts, banana, and other agro-produce.
  • The quality of Nigerian exports has improved, particularly in low-cost products like fashion, local cosmetics, and processed foods.
  • Nigeria recorded a $4 billion trade surplus in the past year, necessitating an optimal and effective foreign exchange rate equilibrium.
  • The PHCCIMA called for phased implementation of the new tax regime to avoid over-speculation.
  • The Group suggested diversification of foreign portfolio sources, such as Foreign Portfolio Investment (FPI), Foreign Direct and Local Investments (FDLI), and incentives for diaspora remittances.

Statistics:

  • Crude oil production: 1.4 million barrels per day (current) vs. 1.8 million barrels per day (target).
  • Crude oil's share of total export earnings: 53% (Q2).
  • Non-oil exports' share of total export earnings: 13.39% (Q2).
  • Increase in Nigeria's agricultural exports: 20% (2025).
  • Trade surplus recorded in the past year: $4 billion.

Sources:

  • Global Data Point. (2022). Nigerian Government Advised to Leverage Crude Oil Export Growth to Boost Economy.