Abuja — Nigeria earned N2.405 trillion from the oil and gas sector in the first six months of 2020, dropping by 8.7 per cent compared to N2.634 trillion recorded in the same period in 2019, according to data obtained from the central Bank of Nigeria, CBN.
The CBN, in its statistical bulletins, disclosed that oil revenue in the first six months of 2020, accounted for 59.68 per cent of gross federally-collected revenue of N4.03 trillion recorded in the same period.
Giving a breakdown of the oil earnings, the CBN report noted that in January, February, March, April, May and June 2020, N527.18 billion, N405.33 billion, N454.34 billion, N284.04 billion and N281.97 billion respectively.
On the other hand, total federally-collected revenue stood at N852.07 billion, N723.75 billion, N634.51 billion, N791.01 billion and N491.51 billion in January, February, March, April, May and June 2020 respectively.
In the first half of 2019, oil revenue, at N2.634 trillion, accounted for 57.29 per cent of total revenue of N4.59 trillion.
Despite the earnings from the oil and gas sector, a significant number of the Nigerian population still live below the poverty line, as the impact of these earnings are not felt on the lives of the people.
Emphasising on the states, the Nigeria Extractive Industries Transparency Initiative, NEITI, disclosed that the financial crisis resulting in inability of many states to meet basic needs, including payment of salaries, has led states to take turns in borrowing to survive.
“That oil-producing states in the Niger Delta region are also affected, in spite of the huge amount of money they have accessed from the special allocation called ‘13% derivation’ over decades, has increased public concern about the use and effectiveness of oil revenue management in the region.”
NEITI added that despite federal government-led initiatives, such as the Niger Delta Development Board, the Niger Delta Basin Development Authority, the Presidential Committee on 1.5% Derivation Fund, the Oil Mineral Producing Areas Development Commission, the Niger Delta Development Commission and the Ministry of Niger Delta, to subnational governments’ use of the 13% oil revenue derivation funds, the interventions in the Niger Delta are yet to reverse or significantly improve the conditions of poverty and underdevelopment of citizens of the region.
“Put differently, the higher revenue disbursement to Niger Delta states from the Federation Accounts Allocation Committee (FAAC) on account of 13% oil derivation have raised citizens’ expectations without a corresponding delivery of performance,” NEITI stated.