Abuja — Nigeria’s earnings from the oil and gas sector dipped by 2.6 per cent to N1.523 trillion in the first quarter of 2020, from N1.564 trillion recorded in the fourth quarter of 2019, according to data released by the Central Bank of Nigeria (CBN).
In its Economic Report for the First Quarter of 2020, the CBN disclosed that gross oil earnings accounted for 60.26 per cent of N2.527 trillion total federally-collected revenue (gross) in the period under review. In comparison, at N1.564 trillion, oil revenue accounted for 58.91 per cent of total federally-collected revenue of N2.655 trillion recorded in the fourth quarter of 2019.
Giving a breakdown of components of oil earnings in the first quarter of 2020, the CBN noted that crude oil and gas exports stood at N172.58 billion, rising by 47.14 per cent from N117.29 billion recorded in the fourth quarter of 2019; while Petroleum Profit Tax/Royalties declined by 6.52 per cent to N838.24 billion, from N896.71 billion recorded in the previous quarter.
Other oil revenue also recorded a decline, dropping by 6.81 per cent to N512.21 billion in the first quarter, compared to N549.64 billion recorded in the fourth quarter of 2019.
The CBN said, “At N2.527 trillion, Federally-collected revenue, in the first quarter of 2020, was lower than the quarterly budget estimate of N3.948 trillion by 36.0 per cent. Similarly, it fell below the receipt in the preceding quarter by 4.8 per cent. The decline in federally-collected revenue (gross), relative to the quarterly budget estimate, was attributed to shortfalls in receipt from both oil and non-oil revenue components during the review period.
“Gross oil receipt, at N1.523 trillion or 60.3 per cent of the total revenue, was below the quarterly budget estimate and the receipt in the preceding quarter by 31.2 per cent and 2.6 per cent, respectively. The decline in oil revenue, relative to the quarterly budget estimate, was due to shortfall in receipt from PPT and royalties.
“Non-oil revenue (gross), at N1.004 trillion or 39.7 per cent of total revenue, fell below the quarterly budget estimate of N1.733 trillion by 42.1 per cent. It also fell below the level in the preceding quarter by 8.0 per cent. The lower non-oil revenue, relative to the quarterly budget estimate, was due to the decline in receipt from Value Added Tax (VAT) and corporate tax.”
The CBN further stated that Nigeria’s crude oil production, including condensates and natural gas liquids, averaged 1.84 million barrels per day (mbd) or 167.44 million barrels (mb) in the first quarter of 2020, representing a decrease of 1.1 per cent, compared with the 1.85 mbd or 170.20 mb produced in the preceding quarter.
It disclosed that Nigeria exported an estimated 1.39 mbd of crude oil, representing a decrease of 0.7 per cent, compared with the 1.40 mbd recorded in the preceding quarter.
According to the CBN, the estimated decrease in production was attributed to the aftermath of the December 2019 OPEC meeting, where members and their allies pledged a further production cut by 500,000 bpd begining in January 2020 to stabilise the global crude market.
In addition, the CBN stated that the average spot price of Nigeria’s reference crude oil, the Bonny Light (37° API), stood at $52.51 per barrel in the first quarter of 2020, representing a decrease of 20.1 per cent and 18.9 per cent below the $65.71 per barrel and $64.75 per barrel recorded in the fourth quarter of 2019 and the corresponding period of 2019, respectively.