Nigeria's
earnings from the petroleum sector have almost been halved due to the slump in crude oil prices at the international market. Income dipped by N2.963 trillion in one year, as data released by the
Central Bank of Nigeria, CBN, revealed that
Nigeria's
oil revenue depreciated by 43.6 per cent to N3.83 trillion in 2015.
The CBN, in its Economic Report for the Fourth Quarter of 2015, explained that the amount earned by the country in 2015, was a far cry from the N6.794 trillion recorded in 2014.
Giving a breakdown of 2015 oil earnings, the CBN report noted that in the first and second quarters of 2015, the country earned N1.21 trillion and N839.02 billion respectively, while it earned N949.45 billion and N830.81 billion for the third and fourth quarters respectively.
Further breakdown of revenue components showed that crude oil and gas sales fetched the country about N898.64 billion in 2015, dropping by 52.6 per cent from N1.896 trillion in 2014.
Petroleum Profit Tax (PPT)/Royalties dropped by 48.2 per cent from N3.439 trillion in 2014 to N1.782 trillion in 2015, while other revenues depreciated by 21.2 per cent to N1.149 trillion in 2015, from N1.458 trillion recorded in 2014.
On a quarter-on-quarter basis,
Nigeria
earned N274.09 billion, N215.4 billion, N196.29 billion and N212.86 billion for the first, second, third and fourth quarters respectively from crude oil and gas sales; while it earned N573.3 billion, N325.03 billion, N495.39 billion and N388.66 billion from PPT/Royalties in the same corresponding periods.
The CBN blamed the decline in oil revenue to the persistent fall in receipts from oil and gas export, due to the continuous drop in the price of crude in the international market.
In a further analysis of the petroleum sector performance in the fourth quarter of 2015, the CBN stated that
Nigeria's
crude oil production, including condensates and natural gas liquids, was estimated at an average of 1.89 million barrels per day (mbd) or 173.88 million barrels (mb) for the fourth quarter.
This, according to the CBN represented a decline of 0.06 mbd or 3.2 per cent, relative to 1.95 mbd or 179.4 million barrels produced in the third quarter of 2015.
"Crude oil export stood at 1.44 mbd or 132.48 million barrels. This represented a decline of 4.2 per cent, compared with 1.50 mbd or 138.00 mb recorded in the preceding quarter. Recent pipeline vandalism in the Niger Delta, oil theft, and illegal bunkering and production shut-ins accounted for the decline in crude oil production. Deliveries to the refineries for domestic consumption remained at 0.45 mbd or 41.4 million barrels during the review quarter," the report explained."
On the other hand, the country recorded gross non-oil revenue of N3.129 trillion, dropping by 5.44 per cent to the N3.309 trillion recorded in 2014.
Continuing, the CBN said: "At N1.6 trillion, total federally-collected revenue was 34.5 and 16 per cent lower than the quarterly budget estimate and the preceding quarter's receipts, respectively. Gross oil receipt which stood at N830.81 billion was lower than both the provisional quarterly budget and the receipts in the preceding quarter due to the persistent fall in receipts from crude oil/gas export arising from the continuous drop in the price of crude oil."
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