Falling prices: Nigeria oil revenue dips by N77bn on january 13, 2015

Continuous decline in the price of crude oil has caused Nigeria to lose as much as N77.2 billion from oil revenue in
one month, according to data obtained from the Central
Bank of Nigeria, CBN.

Specifically, the CBN in its October 2014 Economic Report,
disclosed that oil revenue for the month dropped by 14.11
per cent to N470 billion from N547.2 billion recorded a month before.
similarly, non-oil revenue also declined by N11.1 billion or 3.9 per cent from N284.6 billion in September 2014 to N273.5 billion in October.
As a result, gross federally-collected revenue depreciated by
10.6 per cent or N88.2 billion from N831.8 billion in
September to N743.6 billion in October.
Giving a breakdown of gross oil revenue components for
October, the CBN stated that crude oil/gas sales dropped
to N117.8 billion from N160.4 billion recorded in the
previous month, while domestic crude oil/gas sale
appreciated by N6 billion or 6.4 per cent to N99.6 billion
from N93.6 billion recorded in September.
Petroleum Profit Tax, PPT/Royalties, according to the CBN,
also dipped by N25.5 billion or 9.19 per cent to N251.9
billion in October, from N277.4 billion recorded in the
previous month.
The CBN attributed the drop in the country’s oil revenue to
a decline in crude oil and gas exports receipts due to the
fall in the price of crude oil in the international market.
The CBN said, “At N470.04 billion, gross oil receipts, which
constituted 63.2 per cent of the total revenue, was lower
than both the monthly budget estimate and the preceding
month by 21.3 and 14.1 per cent, respectively.
“The decline in oil receipts relative to the monthly budget
estimate was attributable to fall in receipts from crude oil
and gas exports due to the fall in the price of crude oil in
the international market.”
Continuing, the CBN said that of the gross federally-
collected revenue, about N457.12 billion less all deductions
and transfers was transferred to the Federation Account for
distribution among the three tiers of government and the 13
per cent Derivation Fund.
According to the CBN, the Federal Government received
N217.77 billion; the state and local governments received
N110.46 billion and N85.16 billion, respectively, while the
balance of N43.73 billion was distributed to the oil-
producing states as 13 per cent Derivation Fund.
“From the Value Added Tax (VAT) Pool Account, the
Federal Government received N9.37 billion, while the state
and local governments received N31.25 billion and N21.87
billion, respectively,” the CBN added.
A further analysis of activities in the oil sector during the
period in review, the CBN put Nigeria’s crude oil production,
including condensates and natural gas liquids, at an average
of 2.0 million barrels per day (mbd) or 62 million barrels for
the month.
This, the CBN said, was 0.05 mbd or 2.4 per cent lower than
the 2.05 mbd or 61.50 million barrels produced in the
preceding month.
The CBN said, “Crude oil export was estimated at 1.55 mbd
or 48.05 million barrels for the month. This represented a
decline of 3.1 per cent below the level recorded in the
previous month. Deliveries to the refineries for domestic
consumption remained at 0.45 mbd or 13.95 million barrels
in the review month.
At an estimated average of US$88.78 per barrel, the price of
Nigeria’s reference crude, the Bonny Light (37º API), fell by
9.9 per cent below the level in the preceding month.”