Contribution of oil sector to GDP in Nigeria 2018-2023

Before the coronavirus (COVID-19) pandemic, Nigeria's oil sector generally accounted for about nine percent of the country's gross domestic product (GDP). Between October and December 2020, the oil industry contributed to 5.9 percent to the total real GDP, a decrease of roughly three percentage points compared to the previous quarter. In the second quarter of 2023, the contribution of the oil sector to the country's GDP reached 5.34 percent.

Impact of the pandemic on oil sector

In 2019, over 80 percent of Nigeria's export value was generated by the mineral fuels, oils, and distillation products' sector, accounting for approximately 47 billion U.S. dollars. However, due to the lower demand related to the COVID-19 pandemic, oil production and export dropped. Data for 2020 shows, indeed, a considerable decrease in the export value derived from oil.

Fluctuating oil production

Nigeria is one of the largest oil producers in the world. At the beginning of 2020, Nigeria’s daily oil production exceeded two million barrels. Afterwards, the production decreased and reached 1.14 million barrels per day during January 2021, the lowest value recorded in the last years. Overall, the lowest daily production of oil in Nigeria was recorded during the first three months of 2021.