Nigeria earns N1.4tr from petroleum tax, royalties

Ike Amos 02 March 2016, Sweetcrude, Abuja – Nigeria earned N1.393 trillion from Petroleum Profit Tax, PPT, and royalties in 2015, according to the Central Bank of Nigeria, CBN, report which did not include figures for the month of December.

CRUDE-OILThe CBN, in its Economic Report for November 2015, stated that besides PPT and royalties, Nigeria earned N822.2 billion from crude oil and gas exports, N1.24 trillion from domestic crude oil and gas sales and N91.7 billion from other sources in the petroleum sector from January to November 2015.
In general, the CBN noted,  Nigeria recorded gross oil revenue of N3.55 trillion in the 11-month period, accounting for 54.73 per cent of total federally-collected revenue of N6.484 trillion for the 11-month period, while non-oil revenue of N2.935 trillion accounted for 45.3 per cent of total revenue.
A breakdown of gross oil revenue showed that from January to June, the country earned N486.4 billion, N359.7 billion, N364.6 billion, N286.2 billion, N267.2 and N285.6 billion respectively, while N369.4 billion, N314.9 billion, N265.2 billion, N271.1 and N278.3 billion was recorded in the months of July, August, September, October and November 2015 respectively.
Furthermore, gross federally-collected revenue for January 2015 stood at N692.1 billion; February, March, April, May and June recorded revenues of N554.8 billion, N808.7 billion, N472.2 billion, N462.5 and N462.6 billion respectively, while for the months of July, August, September, October and November, gross federally-collected revenue stood at N679.3 billion, N682.6, N543.9, N478.2 billion and N646.6 billion respectively.
Specifically, for the month of November, the CBN stated that Nigeria’s crude oil production, including condensates and natural gas liquids, stood at an average of 1.95 million barrels per day, mbd, or 58.50 million barrels in the review month.
This, according to the CBN represented a decrease of 0.07 mbd or 3.5 per cent, below the average of 2.02 mbd or 62.62 mb, recorded in the preceding month.
It further stated that crude oil export stood at 1.50 mbd or 45.00 mb and represented a decrease of 4.5 per cent, compared with 1.57 mbd or 48.67 mb in the preceding month.
The fall in crude oil output, according to the CBN, was due to decreased production from onshore and shallow waters by the major oil companies in the joint venture operations due to current challenges, including cash call funding issues, sabotage and security challenges.
The CBN stated further that, “Deliveries to refineries for domestic consumption remained at 0.45 mbd or 13.50 million barrels, during the review month. At an estimated average of US$44.53 per barrel, the price of Nigeria’s reference crude, the Bonny Light (37º API), fell by 10 per cent, compared with the level in the preceding month.
The average prices of other competing crudes, namely the UK Brent at US$43.68 per barrel; the West Texas Intermediate at US$45.18 per barrel; and the Forcados at US$44.82 per barrel, exhibited similar trend as the Bonny Light.
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