Nigeria’s crude exports drop as Arabia, UAE agree on oil output

Proceeds from Nigeria’s crude oil and gas exports dipped significantly in the first quarter of 2021 to $6.48 billion compared to $11.1 billion received in the country’s current account in the corresponding period in 2020, according to data contained in the Central Bank of Nigeria’s balance of payment report.

It also represents a 16.4 percent drop when compared to the $7.7 billion recorded in the 4th quarter of 2020.

Crude oil and gas export proceeds of $54.5 billion in 2019 made up about 84 percent of the government’s export earnings. However, crude oil and gas exports declined to $31.4 billion in 2020 as Covid-19 pandemic triggered a global economic lockdown crashing oil prices to below zero in the second quarter of 2020.

OPEC member countries have had to endure year-long collective crude oil cuts to help limit supplies, shoring up prices. While this has contributed to the stabilization of oil prices, member counties have seen their revenues plummet as they cannot push out as many volumes as they would have preferred.

Nigeria’s crude exports fall as UAE, Arabia agree on output.

On Wednesday, Saudi Arabia and the United Arab Emirates reached a deal on output levels, putting an end to the standoff between the Organization of the Petroleum Exporting Countries (OPEC) and the UAE.