Nigeria's Oil Export Revenue Falls Amid Lower Global Crude Prices
Nigeria's crude oil export earnings declined by 14.41% to $31.54 billion in 2025 despite higher crude production, according to the Central Bank of Nigeria (CBN), highlighting the impact of weaker global oil prices and persistent operational challenges on the country's foreign exchange earnings.
/ You Might Also Like /
Data contained in the CBN's 2025 Balance of Payments (BoP) Report showed that crude oil export earnings fell from $36.85 billion in 2024 to $31.54 billion in 2025. The decline occurred even though crude production increased during the year, underscoring the continued influence of international oil prices and production constraints on Nigeria's export revenues.
The report noted that the fall in crude oil earnings contributed to a reduction in Nigeria's current account surplus, which declined to $14.04 billion in 2025 from $19.03 billion recorded the previous year. According to the CBN, weaker proceeds from crude oil exports were a major factor behind the moderation in the country's external balance.
Higher Production, Lower Revenue
Figures from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that crude oil production increased to 530.41 million barrels in 2025, compared with 408.68 million barrels in 2024.
However, production remained below the country's targets, with operational disruptions, pipeline outages and production losses preventing Nigeria from consistently meeting its OPEC quota. Combined with softer international crude prices, these factors reduced export earnings despite higher output volumes.
Gas and Refined Products Cushion Overall Exports
Despite the decline in crude oil earnings, Nigeria's broader oil and gas exports recorded an improvement.
The CBN reported that total oil and gas exports rose to $48.17 billion in 2025 from $45.51 billion in 2024, supported by stronger gas exports and increased shipments of refined petroleum products. Gas export earnings increased by more than 21%, while refined petroleum exports also strengthened as domestic refining capacity expanded.
The improvement reflects the growing contribution of domestic refining and gas exports to Nigeria's external trade, helping to offset part of the decline in crude oil receipts.
Implications for Housing and Infrastructure
Although the report focuses on the oil sector, lower crude oil export earnings have broader implications for Nigeria's housing and infrastructure sectors.
Reduced oil revenues can limit government fiscal capacity to finance capital projects, including roads, housing programmes and urban infrastructure. Lower foreign exchange inflows may also place pressure on the naira, increasing the cost of imported construction materials such as steel, mechanical equipment and finishing products.
At the same time, stronger performance in gas exports and refined petroleum products points to gradual diversification within the energy sector, which could help stabilise export earnings and support long-term economic resilience.
Outlook
The decline in crude oil export earnings highlights Nigeria's continued exposure to fluctuations in global energy markets despite efforts to increase production. Sustaining public investment in infrastructure and housing will depend not only on improving oil production but also on diversifying export earnings, strengthening domestic refining capacity and expanding non-oil revenue sources.
For the housing and construction sectors, stable public finances and improved foreign exchange availability will remain important for supporting infrastructure development, attracting investment and managing the cost of building materials in the years ahead.
READ MORE
