Tuesday, 26 April 2016

NIGERIAN OIL REVENUE DROPS TO N1.1 TRILLION JUST IN A YEAR

Nigeria's oil revenue drops
N1.1 trillion in one year


– The Nigerian economy has had a rough
time plummeting
– Oil revenue has been the key factor
affecting the economy, as reports show a
drop of about N1.1 trillion
– Analysis show that Nigeria incurred a
huge loss in the 2015 fiscal year
Data obtained from the Central Bank of
Nigeria (CBN), show Nigeria’s oil revenue
dropped from N1.114 trillion to N1.86 trillion
in the 2015 fiscal year.
CBN report shows that Nigeria lost oil
revenue in the 2015 fiscal year.
The N1.114 trillion decline represents 18.35
per cent of Nigeria’s 2016 budget estimate
of N6.07 trillion, and is attributable to the
low price of oil in the international market,
which saw the price of commodity dropping
to as low as $30 per barrel.


According to the CBN Statistical Bulletins for
the first, second, third and fourth quarters of
20115, at N1.859 trillion, the country’s crude
oil revenue for the 2015 fiscal year dipped
by 37.47 per cent from N2.973 trillion
recorded in 2014.
Giving a breakdown of the earnings, the
reports pointed out in the first quarter, Q1
2015, the country earned N557.5 billion from
crude sales, in Q2 N459.89 billion, while in
Q3 and Q4, oil sales earnings dipped further
to N426.15 billion and N415.82 billion
respectively.
The Vanguard reports that in comparison, in
Q1 2014, N843.47 billion was earned from oil
sales, while in Q2, Q3 and Q4, N866.35
billion, 679.42 billion and N584.08 billion
were earned respectively.


As a result, the CBN disclosed that the
country recorded gross oil revenue of
N819.50 billion in Q2 2015, dropping by ¦
372.28 billion or 31.24 per cent from N1.192
trillion recorded in Q1 2015.
The report also put the gross oil earning for
Q2 2015 at N968.42 billion or 54.16 per
cent, below the level in the same
corresponding quarter of 2014. As a result,
Q2 gross oil revenue met 60.35 per cent of
its budget target of ¦ 1.358 trillion. But after
deductions of first line charges, net oil
revenue stood at ¦ 626.84 billion, indicating a
decline of N344.91 billion or 35.49 per cent,
and N643.95 billion or 50.67 per cent, below
Q1 2015 and Q2 2014, respectively.
For Q2 and Q4, the CBN said: “Analysis of
gross receipts in the fourth quarter revealed
that, at ¦ 811.82 billion, oil revenue
accounted for 57.56 per cent of total
federally-collected revenue, while the
balance of N598.58 billion or 42.44 per cent,
was collected from non-oil revenue sources.
“Gross oil revenue for the fourth quarter
reflected decreases of N118.65 billion or
12.75 per cent and N635.42 billion or 43.91
per cent, from N930.46 billion in the third
quarter of 2015 and N1.477 trillion in the
fourth quarter of 2014 respectively.
“Gross oil revenue met 59.79 per cent budget
target of N1.358 trillion.




“After deductions of first-line charges, net oil
revenue stood at ¦ 594.28 billion in the fourth
quarter, indicating declines of ¦ 99.43 billion
or 14.33 per cent, when compared with the
level in third quarter 2015 and ¦ 413.43 billion
or 41.03 per cent, in comparison to its level in
fourth quarter 2014.”
Meanwhile, there might be some respite for
Nigerians, as Dr Ibe Kachikwu, the minister
of state for petroleum resources and the
managing director of the Nigerian National
Petroleum Corporation (NNPC), has
recommissioned the Escravos-Warri-Kaduna
pipeline.
Kachikwu said that Warri had started
working, while Kaduna would start
production at the end of the month. He also
stressed that both Warri and Kaduna
refineries are now receiving crude
simultaneously for the first time in many
years.

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