Oil revenue drops by N189bn

Crude oil29 October 2013, Lagos – Revenue accruable to the Nigerian government from crude oil exports dipped by N188.5 billion to N457.2 billion in August 2013, compared to N645.7 billion recorded in July.

According to the Central Bank of Nigeria, CBN, in its Economic Report for August 2013, the amount received by the government from crude oil in August, is the lowest since the beginning of 2013 and the lowest in a one-year period.

Specifically, crude oil revenue in January 2013 stood at N591.4 billion, rising to N647.6 billion in February, before dropping to N595.3 billion in March.

Thereafter, it was ups and downs, as the figures rose again in April to N613.4 billion; N641 billion in May, dropping again to N559.4 in June, rose again in July to N645.7 billion, before dropping its lowest to N457.2 billion in August.

This contrasts sharply with earnings of N749.1 billion year-on-year to August 2012, the highest over a 12-month period.

A further look at the CBN Report on the gross revenues in August 2013, revealed that that the Federal Government received N129 billion, from the sales of crude oil and Gas, which dropped by N44.1 billion from N173.1 billion recorded in July.

Revenue accruable to the Federal Government from domestic oil and gas sales stood at N109.3 billion, dropping by N4.5 billion from N113.8 billion in the preceding month, while Petroleum Profit Tax/Royalties dropped by N140 billion, from N358.6 billion recorded in July to N218.6 billion as at August.

The CBN attributed the decline in crude oil revenue relative to the preceding month to the shortfall in receipts from exports and other oil revenue during the period in review.

IMF, experts’ observations

In its World Economic Outlook for October 2013, the International Monetary Fund, IMF, said Nigeria’s economy and those of other countries without sufficient buffers would be negatively affected by a sharp or protracted decline in oil and commodity prices.

The IMF further stated that the decline will likely affect planned or ongoing resource development projects in the country.

Also commenting on the outlook of Nigerian economy for the rest of the year, the Managing Director, Cowry Asset Management Limited, Mr. Johnson Chukwu, warned that Nigeria’s economy growth is under threat, especially in the face of volatile global oil prices and the declining trend in Nigeria’s crude receipts.

Oil production
The CBN noted that Nigeria’s crude oil production, including condensates and natural gas liquids, was estimated at an average of 1.88 million barrels per day (mbd) or 58.28 million barrels for the month.

It stated that this was 0.03 mbd or 1.6 per cent higher than the 1.85 mbd or 57.35 million barrels produced in the preceding month.

The improvement the CBN noted was due to the successful arrests and constant clampdown of crude pipelines vandals, adding however, that crude oil theft in the Niger Delta region continued to impact negatively on oil output.

The CBN report further stated that oil export was estimated at 1.43 mbd or 44.33 million barrels, representing an increase of 2.1 per cent, compared with 1.40 mbd or 43.4 million barrels recorded in the preceding month.

It said deliveries to the refineries for domestic consumption stood at 0.45 mbd or 13.95 million barrels during the review month.

– Vanguard

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