Ike Amos
09 March 2019, Sweetcrude, Lagos — Nigeria’s earnings from the petroleum industry appreciated by 34.7 percent to N5.54 trillion in 2018, compared to N4.11 trillion in 2017.
According to data obtained from the Central Bank of Nigeria, CBN, in its Fourth Quarter 2018 Economic Report, oil earnings accounted for 58.66 percent of total gross federally-collected revenue, compared to 55.93 percent in 2017.
The amount the country earned from the petroleum industry in 2018 amounted to 60.88 percent of the N9.1 trillion budget for the 2018 fiscal year and 63.45 percent of the N8.73 trillion proposed budget for 2019.
Further analysis revealed that the 2018 gross oil revenue is 228.17 percent of the N2.428 trillion earmarked for capital allocation in the 2018 budget; 91.27 percent of the recurrent allocation and 64.3 percent of total allocation in the 2018 budget.
In addition, the report stated that the country’s earnings from the petroleum industry amounted to 272.64 percent of N2.032 trillion capital allocations in the 2019 budget; 81.6 percent and 62.7 percent of recurrent and total allocations respectively.
Giving a breakdown of gross oil earnings in 2018, the CBN report stated that N1.29 trillion, N1.39 trillion, N1.39 trillion and N1.47 trillion was recorded in the first, second, third and fourth quarters respectively, compared to N817.48 billion, N795.55 billion, N1.27 trillion and N1.23 trillion recorded respectively in the first, second, third and fourth quarters.
Furthermore, it declared that at N3.72 trillion, earnings from Petroleum Profit Tax/Royalties accounted for 67.22 percent of total gross oil revenue, followed by earnings from crude oil and gas sales which stood at N415.6 billion; while other earnings from the industry stood at N1.377 trillion.
These were in comparison to crude oil and gas sales of N1.22 trillion; N1.8 trillion earned from Petroleum Profit Tax, PPT/Royalties and N1.09 trillion revenue from other sources in the petroleum industry.
The report further stated that gross federally-collected revenue rose by 28.5 percent to N9.44 trillion in 2018 from N7.349 trillion recorded in 2017.
In its analysis of activity in the fourth quarter of 2018, the CBN report said, “At N2.412 trillion, federally-collected revenue in the fourth quarter of 2018, was lower than the proportionate quarterly budget estimate of N3.321 trillion by 27.4 percent. It also fell below the receipts in the preceding quarter by 4.8 percent.
“The decline in federally-collected revenue (gross) relative to the proportionate quarterly budget estimate was attributed to the shortfall in receipts from both oil and non-oil revenue components during the review period.”