Abuja — Nigeria’s earnings from the oil and gas sector dipped by 13.2 percent to N410.2 billion in May 2019, representing a decline of N62.2 billion compared to N472.4 billion recorded in the previous month, according to data obtained from the Central Bank of Nigeria, CBN.
The CBN, in its latest economic report for May 2019, disclosed that earnings from oil and gas accounted for 55.9 percent of gross federally-collected revenue in the month under review, compared to 59.4 percent contribution the sector recorded in April 2019.
Specifically, the report stated that gross federally-collected revenue also declined by 7.73 percent from N795.3 billion recorded in April 2019 to N733.8 billion in the month under review. Non-oil revenue, on the hand, accounted for 44.1 percent of gross federally-collected revenue in May 2019, with N323.6 billion.
“Gross oil receipts, at N410.18 billion or 55.9 percent of the total revenue, was below both the monthly budget of N640.21 billion by 35.9 percent and the preceding month’s receipts of N472.38 billion by 13.2 percent, respectively,” the CBN report noted.
Giving a breakdown of earnings from the petroleum industry, the CBN noted that at N14.7 billion, revenue from crude oil and gas exports accounted for 3.58 percent of gross federally-collected revenue in May 2019, compared to N20.8 billion recorded in April.
The CBN report added that revenue from crude oil and gas exports in May 2019 was 29.3 percent lower than the N4.4 billion recorded from the same venture in April 2019.
The report noted that the country’s earnings from Petroleum Profit Tax, PPT and Royalties appreciated by 6.12 per cent to N270.4 billion, compared to N254.8 billion in the previous, while domestic crude oil and gas sales and others fetched the country N85.9 billion and N39.1 billion, compared to N194.6 billion and 2.1 billion recorded in April respectively.
Petroleum Profit Tax, PPT and Royalties, domestic crude oil and gas sales and others accounted for 65.9 percent, 20.9 percent, and 9.5 percent respectively in May, compared to 53.9 percent, 41.2 percent, and 0.44 percent respectively, recorded in the previous month.
The report stated that “Federally-collected revenue (gross) was estimated at N733.82 billion in May 2019. This was below the monthly budget estimate and the receipts in April 2019 by 33.7 percent and 7.7 percent, respectively. Oil and non-oil receipts (gross), at N410.18 billion and N323.64 billion in the review month, constituted 55.9 percent and 44.1 percent of total revenue, respectively. Federal Government retained revenue and estimated expenditure for May 2019 were N302.69 billion and N490.72 billion respectively, resulting in an estimated deficit of N188.03 billion.
“Domestic crude oil production was estimated at 1.82 mbd or 56.4 million barrels (mb) in April 2019. Crude oil export was estimated at 1.37 million barrels per day (MBD) or 42.5 million barrels (MB) while the allocation of crude oil for domestic consumption was 0.45 mbd or 13.5 mb in the review month. The average spot price of Nigeria’s reference crude oil, the Bonny Light (37° API), rose by 7.2 percent to US$73.70 per barrel in May 2019.”