Michael Eboh
Dublin, Ireland — A significant decline was recorded in Nigeria’s earnings from the oil and gas sector in January 2025, dropping by 45.45 per cent to N608.85 billion, from N1.116 trillion recorded in December 2024, according to the latest economic report from the Central Bank of Nigeria (CBN).
The CBN blamed the decline in Nigeria’s oil earnings on a reduction in receipts from petroleum profit tax (PPT), and royalties; while the drop in the country’s gross federally collected revenue was also as a result of a decline in earnings from company income tax, and customs & excise duties.
According to the bank, the composition of gross federation revenue showed that non-oil revenue remained dominant in January 2025, accounting for 68.67 per cent, while oil revenue constituted the balance.
The CBN, in its economic report for January 2025, however, noted that the amount earned from the petroleum industry in January 2025 was 91.81 per cent higher than the N317.43 billion earned from the sector in January 2024.
Giving a breakdown of the country’s oil and gas earnings, the banking sector regulator reported that revenue from crude oil and gas exports stood at N15.38 billion, compared with zero revenue from exports in the previous month.
Year-on-year, January 2025 revenue from crude oil and gas exports was 76.18 per cent lower than the N64.56 billion recorded from the same item in January 2024.
Furthermore, revenue from Petroleum Profit Tax (PPT) stood at N111.64 billion, dropping by 69.98 per cent compared with N371.88 billion recorded in December 2024; and 93.62 per cent higher compared with N57.66 billion recorded in January 2024.
Earnings from royalties also dipped by 48.59 per cent to N338.01 billion in January 2025, compared with N657.46 billion recorded in the previous month, while it appreciated by 223.39 per cent compared with N104.52 billion recorded in January 2024.
The country did not record any earnings from domestic crude oil and gas sales, while ‘other’ oil earnings stood at N143.32 billion, rising both by 65.6 per cent and 58.58 per cent compared with N86.85 billion and N90.69 billion recorded in the December 2024 and January 2024, respectively.
In general, the CBN reported that royalties accounted for 55.52 per cent of total oil earnings in January 2025, while ‘other’ oil earnings, Petroleum Profit Tax (PPT) and crude oil and gas exports accounted for 23.62 per cent, 18.34 per cent and 2.53 per cent, respectively.
The financial sector regulator further stated that oil earnings in January 2025 was 65.55 per cent short of the monthly target, due, largely, to shut-ins, arising from ageing oil pipelines and installations.
However, it noted that domestic crude production increased, buoyed by improved anti-oil theft measures and the reactivation of previously inactive oil fields.
It said: “January 2025 production, excluding condensates, rose by 4.05 per cent to 1.54 million barrels per day (MBPD) from 1.48 mbpd in the preceding month. The increase was due, primarily, to intensified theft circumvention measures, including the new production monitoring and command centre that tracks crude oil production on a real time basis.
“These measures resulted in higher production from various terminals and streams, such as Escravos, Forcados, Bonny, Brass, Bonga, Odudu, Qua Iboe, and Tulja-Okwuibome.
“Similarly, total production, including blended and unblended condensates, increased to 1.74 mbpd, from 1.67 mbpd in December 2024. Blended condensates contributed 61,620 barrels per day (bpd), while unblended condensates accounted for 137,164 bpd. Nigeria’s production exceeded its OPEC quota of 1.50 million barrels per day (mbpd) by 38,697 bpd (2.67 per cent) in January 2025.”
