Nigeria loses N88bn on reduced India, US oil imports

The latest report from the Nigerian National Petroleum Corporation (NNPC) has shown that India and the United States have slashed their imports of Nigerian crude oil by 43% and 53%, respectively, translating to a loss of at least N88bn in earnings, The Punch reports.

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India, which became the single largest buyer of Nigerian crude in 2013 after the US, reduced its imports from Nigeria in May this year as it bought 7.74 million barrels, down from 13.51 million barrels in April; 12.51 million barrels in March and 12.70 million barrels in February. The Asian country had in January imported 16.29 million barrels of Nigerian crude, its highest monthly level this year, the NNPC data showed.

The US, whose imports of Nigerian crude rose by 577.8 per cent in the first quarter of this year compared to the same period of 2015, reduced its import by 5.77 million barrels in May from 10.13 million barrels in the previous month.

In February, the US bought as much as 12.12 million barrels from Nigeria, making it the second largest buyer of the country’s crude after India. Using a conservative price of $40 per barrel and N197/$ official exchange rate in May, the decrease of 11.14 million barrels in the two countries’ imports of Nigerian crude amounts to N87.9bn.