Nigeria’s revenue from oil, gas drops to N186bn in one month

*Central Bank of Nigeria, CBN.

*Central Bank of Nigeria, CBN.

30 July 2016, Sweetcrude, Abuja — Nigeria’s earning from the oil and gas sector dropped slightly by 0.48 per cent to N185.8 billion in the month of May 2016, according to data obtained from the Central Bank of Nigeria, CBN.

The CBN, in its Economic Report for May 2016, disclosed that oil revenue declined by N900 million from N186.7 billion recorded in the preceding month. The May figure also represented a decline of N81.4 billion or 30.46 per cent from N267.2 billion recorded in May 2015.

In general, the CBN stated that gross federally-collected revenue in May 2016 stood at N384.88 billion, falling short of the provisional monthly budget estimate of N814.87 billion by 52.8 percent.

It added that gross federally-collected was also lower than the receipt of the preceding month by 1.6 per cent.

It noted that the development, relative to the provisional monthly budget estimate was attributed to the decline in oil and non-oil revenue.

According to the CBN, at N185.76 billion or 48.3 percent of the total revenue, gross oil receipts fell short of both the provisional monthly budget estimate of N452.60 and the preceding month’s receipts of N227.69 billion by 59.0 and 0.5 percent, respectively.

The CBN attributed the decrease in oil revenue relative to the monthly budget estimate to the decline in domestic crude oil/gas sales owing to shut-downs and shut-ins in production arising from repairs at some NNPC terminals.
It added that pipeline destruction, vandalism and the persistent decline in crude oil prices also contributed to the decline.

A further breakdown of oil revenue revealed that crude oil and gas export sales stood at N57.1 billion in May, rising sharply by 111 per cent from N27 billion recorded in the preceding month, while earnings from Petroleum Profit Tax, PPT and Royalties dropped to N65.7 per cent, from N83.6 billion recorded in April 2016.

Domestic crude oil and gas sales also dropped to N56.2 billion from N69.5 billion recorded in April 2015, while other earnings from the petroleum industry rose slightly to N6.8 billion from N6.6 billion in April 2016.

In the month of May 2015, the CBN data showed that oil revenue stood at N267.2 billion, broken down into crude oil and gas export sales N80.4 billion, PPT/Royalties N94.3 billion, domestic crude oil and gas sales N83.8 billion and others N8.7 billion.

In its further analysis of the May 2016 figure, the CBN said, “Of the gross federally-collected revenue, the sums of N57.11 billion, N1.20 billion and N6.33 billion were deducted from the gross oil revenue in respect of Joint Venture Contract (JVC) Cash Calls, DPR cost of collection and NNPC Refunds, respectively; leaving a net balance of N121.12 billion as oil receipts.

“Similarly, the sum of N7.35 billion was deducted as cost of collection by the FIRS and NCS from the gross non-oil receipt, leaving a net balance of N191.77 billion. Overall, the total federally-collected revenue (net) amounted to N312.89 billion.

“Of the total federally-collected revenue (net), the sum of N207.88 billion was transferred to the Federation Account for distribution among the three tiers of government, N62.65 billion to VAT Pool Account, N27.08 billion to the Federal Government Independent Revenue and N15.28 billion to ‘Others’ (including Tertiary Education Trust Fund, National Information Technology Development Fund and Customs Special Levies).”

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