Nigeria oil revenue falls by N132.5bn in four months

  Nigeria oil revenue falls by N132.5bn in four months

Nigeria witnessed a free fall in its gross oil revenue between June and October 2014 as it plunged by N132.5bn from N602.5bn to N470bn.

The latest monthly economic report of the Central Bank of Nigeria showed that although the oil revenue fell by N118.9bn between March and May, it moved up by N32.3bn in June.

The increase in June was, however, not sustained in July through October. For instance, between September and October, the nation’s gross oil receipts plummeted by N77.2bn from N547.2bn to N470bn.

The CBN noted that the decline in oil receipts relative to the preceding month was mainly due to the fall in receipts from domestic crude oil and gas sales, adding that this was particularly due to the fall in the prices of crude oil in the international market.

Other factors that led to the decline in oil receipts were the fall in receipts from the Petroleum Profit Tax and royalties.

It said the gross federally-collected revenue in October was estimated at N743.57bn, indicating a decline of 10.6 per cent below the figure for the preceding month.

The central bank stated, “Available data showed that estimated federally-collected revenue in October 2014, at N743.57bn, was lower than both the monthly budget estimate and the receipts in the preceding month by 18.0 and 10.6 per cent, respectively. The decline in estimated federally-collected revenue (gross) relative to the monthly budget estimate was largely attributable to the shortfall in receipts from oil revenue during the review month.

“At N470.04bn, 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.”

It said non-oil receipts, at N273.54bn (36.8per cent of the federally-collected revenue), was 3.9 per cent lower than receipts in the preceding month.

According to the CBN, the decline in gross non-oil receipts relative to the level in the preceding month reflected largely the fall in receipts from corporate tax.

It said the Federal Government’s estimated retained revenue in October 2014 was N278.79bn, while total estimated expenditure was N320.73bn, adding that the fiscal operations of the government resulted in an estimated deficit of N41.94bn, compared with the monthly budget deficit of N80.35bn.

The bank added, “Crude oil export was estimated at 1.55 million barrels per day or 48.05mbd during the month. The average price of Nigeria’s reference crude, the Bonny Light (370API), was estimated at $88.78 per barrel, indicating a decline of 9.9 per cent below the level in the preceding month.

“World crude oil output in October 2014 was estimated at 92.5 million barrels per day, while demand was estimated at 92.11mbd, representing an excess supply of 0.39mbd, compared with 92.33 and 91.19mbd supplied and demanded, respectively in the preceding month.”

PUNCH