Nigeria: Earnings from PPT, royalties drops to N314bn in Q1

*Offshore oil exploration.

*Offshore oil exploration.

01 July 2016, Sweetcrude, Abuja — Nigerian earned N314.04 billion from Petroleum Profit Tax (PPT) and Royalties in three months, between January and March 2016, according to the Central Bank of Nigeria, CBN.

The CBN, in its Economic Report for the First Quarter of 2016, revealed that the amount earned from PPT/Royalties represented a decline of 19.2 per cent or N74.62 billion from N388.66 billion recorded in the fourth quarter of 2015.

The amount is also a decline of N259.26 billion or 45.22 per cent from PPT/Royalties of N573.3 billion recorded in the first quarter of 2015.

The amount earned in the first quarter of 2016, according to the CBN report, was the lowest when compared against quarterly figures since 2014.

Particularly, in the first quarter of 2014, the country earned N874.47 billion from PPT/Royalties; while earnings
from the second, third and fourth quarters of 2014 stood at N838.89 billion, N916.31 billion and N809.89 billion respectively.

For the first, second, third and fourth quarters of 2015, PPT/Royalties was N573.30 billion, N325.03 billion, N495.39 billion and N388.66 billion respectively.

The CBN further stated that the country recorded gross federally collected revenue of N1.269 trillion in the first quarter of 2016, dropping by 18.05 per cent or N279.37 billion from N1.548 trillion recorded in the previous quarter, while it depreciated by N787.05 billion or 38.29 per cent as against gross federally collected revenue of N2.056 trillion recorded in the first quarter of 2015.

According to the CBN, federally-collected revenue, at N1.269 trillion, during the first quarter of 2016, was lower than the 2015 quarterly budget estimate of N2.445 trillion by 48.1 per cent, while it declared that the decline in federally-collected revenue relative to the budget estimate was attributed to the shortfall in receipts from both oil and non-oil revenue during the review quarter.

Continuing, the CBN said, “At N666.13 billion or 52.5 per cent of the total revenue, gross oil receipt was lower than the provisional quarterly budget and the receipts in the fourth quarter of 2015 by 50.9 and 19.8 per cent, respectively.

“The decline in oil revenue relative to the budget estimate was attributed to the persistent fall in receipts from crude oil/gas export, due to the continuous drop in the price of crude oil in the international market as well as series of shut-ins and shut-downs at some NNPC terminals owing to pipeline vandalism and repairs during the review quarter.

“At N602.46 billion or 47.5 per cent of total revenue, gross non-oil receipts fell below the provisional budget estimate and receipts in the fourth quarter of 2015 by 44.6 and 16.0 per cent, respectively. The decline in non-oil revenue relative to the provisional budget estimate was due, largely, to the fall in receipts from all of its components except Customs Special Levies (Non-Federation Account) during the review quarter.”

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