Nigeria’s revenue from crude oil sales dropped lower to N1.203 trillion in the first half of 2016. It dropped by N577 billion from N1.78 trillion recorded in the second half of 2015, according to data available in the Central Bank of Nigeria, CBN.
In its analysis of Federally-collected revenue into the Federation Account, the CBN, in its Economic Report for the Second Quarter of 2016, stated that the country recorded oil revenues of N666.13 billion and N537.19 billion in the first and second quarters of 2016 respectively.
This was in comparison to oil revenues of N949.45 billion and N830.81 billion recorded in the third and fourth quarter of 2015 respectively. Also, the report noted that at N1.203 trillion, Nigeria’s crude oil revenue in the first half of 2016 depreciated by 41.29 per cent, representing a decline of N846 billion when compared with oil revenue of N2.049 trillion recorded in similar period in 2015.
Specifically, in the first and second quarters of 2015, Nigeria’s crude oil revenue stood at N1.211 trillion and N839.02 billion respectively. The CBN blamed the decline in oil revenue on the continued fall in receipts from crude oil/gas exports arising from persistent low price of crude oil. The CBN also attributed the drop to incidences of shut-ins and shut-downs at some Nigerian National Petroleum Corporation, NNPC, terminals, owing to pipeline vandalism.
As a result, the report noted that at N1.224 trillion, non-oil earnings accounted for 50.4 per cent of gross federally-collected revenue of N2.428 trillion in the first half of 2016, while oil earnings accounted for 49.6 per cent of total federally-collected revenue.
In its analysis of gross Federation Account revenue for the second quarter of 2016, the CBN said, “At N1.159 trillion, total federally-collected revenue was 51.3 and 8.6 per cent lower than the quarterly budget estimate and the preceding quarter’s receipts, respectively.
“At N537.19 billion or 46.3 per cent of the total, gross oil receipt was lower than both the provisional quarterly budget and the receipts in the preceding quarter.” The report put Nigeria’s crude oil production, including condensates and natural gas liquids estimate at an average of 1.54 million barrels per day (mbd) or 141.68 million barrels (mb) for the second quarter of 2016.
Specifically, the report noted that Nigeria exported 1.09 million barrels per day of crude oil or 100.28 million barrels in the second quarter of 2016, while deliveries to the refineries for domestic consumption remained at 0.45 mbd or 41.40 million barrels during the review quarter.
In addition, the CBN explained that, “Of the gross federally-collected revenue in the second quarter of 2016, a net sum of N665.67 billion was transferred to the Federation Account for distribution among the three tiers of government and the 13 per cent Derivation Fund. The sums of N100.92 billion, N186.83 billion and N48.09 billion were transferred to the Federal Government Independent Revenue, VAT Pool Account and Others, repectively.
“The Federal Government received N323.16 billion, while the state and local governments received N163.91 billion and N126.37 billion, respectively. The balance of N52.23 billion was allocated to the 13 per cent Derivation Fund for distribution among the oil-producing states.
“The Federal Government also received N28.02 billion from the VAT Pool Account, while the state and local governments received N93.41 billion and N65.39 billion, respectively.”
