₦airaland Forum

Despite being Africa’s top oil producer, Nigeria spent over ₦1.19tn importing crude oil in just 3 months.

🇳🇬NIGERIA IMPORTED CRUDE WORTH ₦1.19tn — Q1 2025

Crude Import first 3 months
Jan — ₦335.69bn
Feb — ₦445.27bn
Mar — ₦407.29bn
...
...
Total — ₦1.19tn

Crude Oil was Nigeria's 3rd most imported product for Q1 2025, with a share of 7.7% of total imports, trailing only gas oil and motor spirit ordinary, which were valued at N1.83tn and N1.76tn, respectively.

🇳🇬NIGERIA'S CRUDE OIL IMPORT Q1 2025

Top 3 places Nigeria imported from
1 🇺🇸USA — ₦726.84bn
2 🇦🇴Angola — ₦223.58bn
3 🇩🇿Algeria — ₦122.37bn
...
...
Total crude import Q1 2025 — ₦1.19tn

61% of Nigeria's crude imports for Q1 2025 came from the USA

#Statisense
(NBS)

Make this make sense abeg.. We have crude, yet we are importing both the crude and it's products

Nbotee:
Make this make sense abeg.. We have crude, yet we are importing both the crude and it's products

we don sell all our crude oil on credit my oga if u reason naija matter 2 much u fit craze o.... We Don use our crude oil collect loan finish

E be say things,na this 210 trillion NNPC scandal dey even muzz me pass….

Is our own finished? Meanwhile all over Niger delta lies with big pipes meant for crude milking in that region with zero development from the government.

Nbotee:
Make this make sense abeg.. We have crude, yet we are importing both the crude and it's products

It’s Dangote’s crude oil. .

Because Nigeria (NNPC) refuses to sale crude to Dangote refinery.

These independent marketers and NNPC are now taking Nigerians for a foool

Nigeria imports crude from the US and still export crude to the same US. This theory isn't understandable

Just imagine how these wicked greedy men are wasting scarce resources when we have Dangote refinery, imagine if that 1.9 trillion goes to Dangote it will aid our economy , all these happening because greedy men won't allocate crude to Dangote

a so-called giant largest African oil producer dey import same crude worth over trillions...

d witch wey cook give naija chop stwong well well!

it is APC vs Nigerians in 2027

richiemcgold:
Nigeria imports crude from the US and still export crude to the same US. This theory isn't understandable

This is where you know it's mad men leading the country

SarkinYarki:
Just imagine how these wicked greedy men are wasting scarce resources when we have Dangote refinery, imagine if that 1.9 trillion goes to Dangote it will aid our economy , all these happening because greedy men won't allocate crude to Dangote

I know you have more sense than this.

You are only pretending.

Shame on those who fall for it.

To better understand what's happening, Google the term "forward contracts".

SarkinYarki:
This is where you know it's mad men leading the country

Na Buhari sell all our crude in advance and japa. Honestly Presidents in Nigeria should start facing repercussions of their actions. Immunity need to be removed.

Tinubulating Nigerians with lies, suffering and hardship. No matter how you lied, the truth must be out one day.

Bat is a condemned cr.minal

This could be crude imported by Dangote Refinery

Make it make sense

1. Nigeria was running out of money, so Nigeria made a deal on loans in exchange for crude oil

2. Nigeria is still battling with increasing production of its crude oil...about 900k or so per day has been exchaged for dollars not all at the same time, and we produce about 1.3m - 1.4m barrels per day.

3. Dangote needs 650,000 barrels and the Naira for Crude though includes Dangote, but other local refineries qualify as well.

4. Dangote in order to meet its crude demands decided to buy from US...why, because US has some of the cheapest low rate crude that Dangote can refine. Nigeria has some of the best crude which is why US and others are buying from us in exchange for dollars.

5. We are trying so hard now to increase production, which is why we forgave Ken Saro Wiwa with pardon and National Honors so we can resume drilling in Ogoni Land.

6. The plan is to get to 2 million barrels per day as set by our budget, so we can meet obligations home and abroad and Dangote wont need to import crude because our crude is better anyways.

7. Dangote also want to stop importation of PMS so he can sell what he refines and be able to pay for the crude he imported, which makes sense. Allow importation of PMS means he will need to find market elsewhere.

8. That is also why he got those trucks so he can sell them so cheap to all corners of Nigeria which would make importation of PMS not profitable. If he is selling at N830 and they are importing at N900 and selling at SE for N1000 and Borno at N1300...those importing will still make money and ask Fed Govt to pay the difference.

9. If Dangote can ship them and those areas can sell for maybe N850, Govt wont need to pay differentials and those importing PMS will not be able to bring in PMS because they will be operating at a loss all over the country. As it is now, there are still markets for PMS importation which is impacting places that need development and areas that affect food production.

Hope this all makes sense...these are my own analysis. Feel free to critique, add, subtract as the case may be. I tried my best...I am a news junkie by the way, so that is why I am able to connect the dots. I may not be 100% right but I hope I am close lol.

DrMB:
Despite being Africa’s top oil producer, Nigeria spent over ₦1.19tn importing crude oil in just 3 months.

2mch:
Na Buhari sell all our crude in advance and japa. Honestly Presidents in Nigeria should start facing repercussions of their actions. Immunity need to be removed.

i swear...it seems we really don't know the meaning of immunity...it means while you are in office you can't be prosecuted for civil offense but criminal..but I think we should start prosecuting our presidents and governors for infractions during their tenure.. maybe that will make them sit up .

Btw if you ready want to look at the Genesis of the cause of Buhari forward contracts..you ve got to start from Gej period...when states were broke and couldn't pay salaries, Buhari came in Emefiele advice him to use CBN to give states loans through ways and means ...they rest is history and that what we suffering now ..if only the Present administration can tight it's belt ,they haven't...but I totally support this administration stand on subsidy and floating of Naira.. damn av been an advocate of that since 2014..sm sure I must av wrote it here somewhere tho.

Judolisco:
we don sell all our crude oil on credit my oga if u reason naija matter 2 much u fit craze o

Honestly, only God knows how this country is still surviving economically

An oil producing country spending over a trillion naira in just 3 months importing the same crude oil it has in abundance. Clear case of a blessing turning to a curse. APC is making PDP look like saints. The worst part is that those suffering will still cheer and hail these same politicians. This is now beyond suffering and smiling.

Nbotee:
Make this make sense abeg.. We have crude, yet we are importing both the crude and it's products

we have used our crude as collateral for loans. So dangote has to import hahahaha

Spoil-sorts are everywhere, elevating selfish and personal interest above the corporate existence and well-being of the country.

They are the real traitors

I don’t believe this anyway, Nigeria is one of the countries the US buys crude oil from. Why do we have to import from the US when we have ours?

When a nation loves evil that is what will happen. The bible has said it already.

Judolisco:
we don sell all our crude oil on credit my oga if u reason naija matter 2 much u fit craze o

Correct. Our crude has already been sold in advance.

For Dangote and other refineries, they have to import.

These are issues the current admin is working hard to to correct. Not sure how long we’ll do this, but eventually it will end.

DrMB:
Despite being Africa’s top oil producer, Nigeria spent over ₦1.19tn importing crude oil in just 3 months.

Another senseless statistics from the stable of 'Statisenseless'

Nigeria used to import PMS and we now had to import crude oil because we have a functional refinery, and that is now a issue to the senseless.

Yes we produce crude, most of our crude is sweet/light and hence more expensive, so it is natural that dangote will buy the cheaper heavy crude from the US to blend with the sweet crude from Nigeria, essentially what some other refineries also do.

The senseless one will not compare what we would have spent on PMS to what we are spending on crude oil.

And yes, they won't show you the figures in Dollars either, because the Naira figures is more sensational.

If it is something they considered positive, they will show you the figures in Dollars, just to minimise the govts achievements.

'Statisenselense don open mouth again oh'

toboizilla:
I don’t believe this anyway, Nigeria is one of the countries the US buys crude oil from. Why do we have to import from the US when we have ours?

That's the question a sensible person should be asking.

We buy crude from them, we also sell to them, because refinery blend crudes from multiple sources, also timing and availability, it is business and the smart business men will make the best decisions to maximise their profit, if that decision is to import crude instead of buying local, so be it.

It is not as if Nigeria is not able to sell the crude we are producing

DrMB:
Despite being Africa’s top oil producer, Nigeria spent over ₦1.19tn importing crude oil in just 3 months.

Ebilokan imports more oil and refined fuel products. What is the brilliant thing that happened to his balablu promises to improve the exchange rate to N200/$1 by May 2027?

Majesty2:
The APC Presidential candidate, Asiwaju Bola Ahmed Tinubu, has revealed how he will drive the economy of the country, strengthen the Naira and making the country "import less" while "exporting more".




https://www.youtube.com/watch?v=kCskn6CbuqA

SarkinYarki:
This is where you know it's mad men leading the country

When buhari was destroying this country, no one heard your voice, all of a sudden you became a patriot.
Tinubu till year 6500

wellmax:
Correct. Our crude has already been sold in advance.

For Dangote and other refineries, they have to import.

These are issues the current admin is working hard to to correct. Not sure how long we’ll do this, but eventually it will end.

Please what magical confusion is this administration trying to correct something by doing more of it?

ijustdey:
Nigeria will pay an interest of 11.85 percent per annum on the $3.3 billion “pre-export finance facility” (PxF) facilitated by the Nigerian National Petroleum Company (NNPC) Ltd and arranged by Afrexim Bank, TheCable can report.

Until now, the fine details of the transaction, which has a five-year tenor, had been withheld by all parties involved.

A similar cocoa-backed $800 million facility arranged for Ghana by its cocoa marketing board attracts an interest of 8 percent per annum.

Bilateral lenders, such as the International Monetary Fund (IMF), would typically charge 1-3 percent with a longer tenor.

In the details seen by TheCable, Nigeria pledged a total of 164.25 million barrels of crude oil — at 90,000 barrels per day — starting from 2024 to repay the loan through Project Gazelle Funding Ltd, an “orphan” special purpose vehicle (SPV) incorporated in Bahamas for the PxF.

Effectively, the NNPC has pledged 38.58 percent of five years’ worth of tax and royalty oil to secure the loan.

Nigeria pledges over $12 billion worth of oil
At the beginning of 2024, a barrel of Nigerian oil was sold at the international market at $77.93 per barrel, according to the Central Bank of Nigeria (CBN) data.

At $77.93 per barrel, the 164.25 million barrels of oil pledged by Nigeria equals $12.8 billion — about three times more than the facility taken.

Pre-2014, the national oil company used to remit an average of $3 billion from oil sales every month.

Officially, Project Gazelle Funding Ltd (PGFL) is the borrower while the NNPC is the “sponsor” and will pay with oil to the SPV to liquidate the loan.

To make the repayment, the NNPC will forward-sell 90,000 barrels per day of Nigeria’s share of offshore crude oil under the production sharing contract (PSCs) with the oil companies.

Under PSCs, the companies usually pay royalties and taxes by giving the oil equivalent to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Federal Inland Revenue Service (FIRS) respectively.

The NNPC in turn exports the oil on behalf of NUPRC and FIRS and remits the proceeds to the agencies.

This is part of the revenues paid into the federation account and shared by the three tiers of government.

But under the PxF, the revenue from 90,000 barrels per day will be used to service the loan in the next five years.

The loan arrangers will get a commission of $66 million or 2% of the facility, TheCable further learnt.

Nigeria will pay 2 percent penalty per annum in the event of a default.


‘DOLLAR LIQUIDITY TO STABILISE THE NAIRA’

The national oil company announced in August 2023 that the PxF was to support the federal government “in its ongoing fiscal and monetary policy reforms aimed at stabilizing the exchange rate market”, describing it as “a relief for the naira”.

It called the facility “crude oil repayment” with an upfront cash loan “against proceeds from a limited amount of future crude oil production”.

At the time, the dollar exchanged for an average of N775 in the official market and N885 on the streets.

The rates have now moved to N1,035/$ (official) and N1,230/$ (parallel).

Nigeria’s outstanding forex liabilities are currently thought to be over $7 billion.

In an explainer after announcing the PxF last year, the NNPC said its exposure is very limited, “covering just a fraction” of their entitlements and that “there are no sovereign guarantees tied to it”.

It said it “will also equip the Federal Government with the necessary dollar liquidity to stabilize the Naira, with limited risk”.

A strengthened naira as a result of the initiative, it said, “will lead to a reduction in fuel costs. This means that if the Naira appreciates in value, the cost of fuel will drop and further increases will be halted”.

It also ruled out subsidies, maintaining that a stronger naira “will result in lower prices from the current level, making subsidies unnecessary. The deregulation policy remains unchanged”.

Critics questioned NNPC’s involvement in getting loans to boost forex reserves when it should be concentrating its efforts on bringing in more oil revenues.

There were also questions over the decision to pledge the tax and royalty oil belonging to the entire federation to secure the loan.

Analysts also queried why the details of the deal were never made public.

https://www.thecable.ng/exclusive-nigeria-to-pay-11-85-interest-on-3-3bn-afriexim-nnpc-loan-pledges-164m-barrels-as-security/amp