A Review of the Nigerian Energy Industry

Oil revenue crashed by 19.8% in January — CBN

Central-Bank-of-Nigeria-CBN14 April 2014, Abuja – The nation’s oil revenue fell by 19.8 per cent in January 2014 compared to the corresponding period last year, according to the latest statistics from the Central Bank of Nigeria.

While attributing the fall to the decline in receipts from petroleum profit tax and royalties, the CBN indicated that oil receipts for the same period amounted to N474bn, which represented 70.3 per cent of the total revenue.

Also, the CBN data showed that non-oil receipts, which represented 29.7 per cent of the total revenue, fell by 11.7 per cent than the receipts in the preceding month to N200.27bn.

Relative to the corresponding month of 2013, non-oil receipts, however, rose by 10.1 per cent, the report noted.

The decline relative to the preceding month reflected, largely, the fall in receipts from corporate tax and value added tax during the review period.

The CBN data also revealed that the total federally-collected revenue in January 2014 was N674.67bn, showing a decline of 6.0 and 12.8 per cent below the receipts in the preceding month and the corresponding period of 2013, respectively.

Consequently, the report stated that the “Federal Government estimated retained revenue in January 2014 was N262.88bn, while total estimated expenditure was N368.35bn.

“Thus, the fiscal operations of the Federal Government resulted in an estimated deficit of N105.47bn, compared with the estimated monthly budget deficit of N73.92bn.”

According to the report, crude oil production, including condensates and natural gas liquids in January was estimated at 1.92 million barrels per day or 59.5 million barrels for the month.

Crude oil export was estimated at 1.47 million barrels per day or 45.6 million barrels during the month.

The average price of Nigeria’s reference crude, the Bonny Light, was estimated at $110.19 per barrel, indicating a decline of 2.6 per cent below the level in the preceding month, according to the report.

The CBN data showed that the world crude oil output in January 2014 was estimated at 90.44 million barrels per day, while demand was estimated at 90.00mbd.

This, it stated, represented an excess supply of 0.44mbd, compared with 90.18mbd and 90.93mbd supplied and demanded, respectively, in the preceding month.

Meanwhile, of the federally-collected revenue, the sum of N468.28bn was transferred to the Federation Account for distribution among the three tiers of government and the 13 per cent derivation fund, according to the CBN.

The report stated, “The Federal Government received N221.16bn, while the states and local governments received N112.18bn and N86.48bn, respectively.

“The balance of N48.46bn was credited to the 13 per cent derivation fund for sharing by the oil-producing states.

It added, “From the VAT pool account, the Federal Government received N9.32bn, while the states and local governments received N31.07bn and N21.75bn, respectively.

“Overall, the total allocation to the three tiers of government from the federation and VAT pool accounts in the month amounted to N573.58bn.”


– The Punch

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