26 April 2016, Abuja — NIGERIA’S earnings from the petroleum sector dropped sharply, as revenue from the sale of crude oil dipped by N1.114 trillion to N1.86 trillion in the 2015 fiscal year, data obtained from the Central Bank of Nigeria, CBN, has revealed.
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.
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 N372.28 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 percent, 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 N1.358 trillion.
But after deductions of first line charges, net oil revenue stood at N626.84 billion, indicating a decline of N344.91 billion or 35.49 per cent, and N643.95 billion or 50.67 percent, 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 N811.82 billion, oil revenue accounted for 57.56 percent of total federally-collected revenue, while the balance of N598.58 billion or 42.44 percent, 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 percent 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 N99.43 billion or 14.33 percent, when compared with the level in third quarter 2015 and ¦ 413.43 billion or 41.03 percent, in comparison to its level in fourth quarter 2014.”
*Michael Eboh – Vanguard