Oil price: Nigeria loses $45.9m revenue in April

*Kemi Adeosun, Nigeria's finance minister.

*Kemi Adeosun, Nigeria’s finance minister.

Oscarline Onwuemenyi

31 May 2016, Sweetcrude, Abuja — Nigeria recorded a revenue loss of $45.9 million in April, according to Minister for Finance,  Mrs. Kemi Adesun.

The revenue loss was as a result of the drop in the average price of crude oil from $39.04 in December 2015 to $29.02 in January this year, the minister said.

This revelation came as the Federation Account Allocation Committee, FAAC, recently confirmed a decline of N18.8 billion in the nation’s gross statutory revenue from N232.61 billion in March to N213.81 billion last month.

Monthly allocations from Nigeria’s Federation Account to the three tiers of government for the month of April equally fell by N18.2 billion to N281.5 billion from N299.74 billion in March.

“The gross statutory revenue of N213.81 billion received for the month was lower than the N232.61 billion received in the previous month by N18.8 billion.

“There was a revenue loss of $45.9 million as a result of the drop in the average price of crude oil from $39.04 in December 2015 to $29.02 in January 2016.”

In terms of allocations to the three tiers of government, the minister said the decline in revenue had a negative impact on the amount shared.

She added that a marginal drop in income was recorded from oil and gas royalty as well as import duty.

According to Adeosun, while oil production increased slightly between December 2015 and January 2016 despite explosions at the Escravos export terminal, the force majeure declared at the Brass terminal, shut-ins and shut-down of pipelines at other terminals for repairs and maintenance affected government revenues.

Nigeria plans to earn a total N3.86 trillion revenue this year, N820 billion of which is expected to come from oil-related sources. The oil earnings are based on a crude oil benchmark price of $38 per barrel and a production estimate of 2.2 million barrels per day.

With crude oil prices still below $50 a barrel and oil production suffering seriously from the resurgence of militancy and attacks on oil and gas installations in the Niger Delta, it would be a tall order for the government to achieve these targets.

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