Abuja — Nigeria’s gross oil revenue appreciated by 9.92 per cent to N1.34 trillion in the third quarter of 2019, compared to N1.219 trillion recorded in the second quarter of 2019.
According to data obtained from the Central Bank of Nigeria’s (CBN) Economic Report for Third Quarter 2019, oil revenue accounted for 49.63 per cent of total gross federally collected revenue in the period under review.
Giving a breakdown of the country’s earnings from the oil sector, the CBN report disclosed that revenue from crude oil and gas exports stood at N57.28 billion, dropping by 34.15 per cent from N86.98 billion recorded in the second quarter of 2019.
In addition, the report noted that earnings from Petroleum Profit tax/Royalties stood at N947.53 billion in the third quarter, rising by 24.03 per cent from N763.97 billion recorded in the previous quarter, while other earnings dipped by 8.96 per cent from N368.25 billion in the second quarter to N335.26 billion in the quarter under review.
In general, the report added that gross federally collected revenue appreciated by 18.34 per cent to N2.7 trillion, compared to gross federally collected revenue of N2.28 trillion recorded in the second quarter.
The report stated that, “At N2.7 trillion, federally-collected revenue in the third quarter of 2019, was lower than the quarterly budget, of N3.759 trillion by 28.2 per cent. It, however, rose by 18.3 per cent above receipts in the preceding quarter.
“The decline in federally-collected revenue (gross), relative to the quarterly budget, was attributed, largely, to shortfalls in receipts from oil revenue in the review period.
“Gross oil revenue, at N1.34 trillion or 49.6 per cent of the total receipts, was below the quarterly budget by 44.6 per cent, but was above the receipt in the preceding quarter by 9.9 per cent. The decline in oil revenue, relative to the quarterly budget, was due, largely, to shortfalls in all the components of oil revenue, except domestic crude oil and gas sales.”
The report disclosed that the Nigeria’s crude oil production, including condensates and natural gas liquids, averaged 1.89 million barrels per day (MBD) in the review quarter, representing an increase of 1.6 per cent, compared with 1.86 mbd produced in the preceding quarter.
The report attributed the increase in production to the re-opening of some major oil installations earlier shutdown, including the contributions from the start-up of the new Total Egina field.
The CBN report noted that “the average spot price of Nigeria’s reference crude oil, the Bonny Light (37° API) fell from $71.32 per barrels in the second quarter of 2019, to $65.21 per barrels in the third quarter of 2019. This represented a decrease of 8.6 per cent and 14.7 per cent below the levels in the preceding quarter and the corresponding period of 2018, respectively.
“The development was, due, largely, to tightened crude oil supply in the global oil market, majorly to high U.S crude stockpiles in the period and worries over escalating US-China trade dispute. The UK Brent at $63.42 per barrel, Forcados at $65.28 per barrel and WTI at $57.25 per barrel, exhibited similar trends, as the Bonny Light.