Nigeria’s crude export earnings decline to N359.73b

Crude oil

REVENUE collected by the Federal Government from crude oil and gas export has dropped by 39.8 per cent to N359.73 billion in the month of February, according to the latest data from the Central Bank of Nigeria (CBN).

This has however, affected the Federally-collected revenue estimated at N560.84 billion, showing a decline of 38.1 percent.

The CBN Economic Report for February released last week, attributed the decline to drop in revenue from crude oil and gas exports, occasion by the drop in the price of crude oil in the international market.
It explained that of the gross federally-collected revenue, a net sum of N408.37 billion (excluding deductions and transfers) was transferred to the Federation Account for distribution among the three tiers of government and the 13 per cent Derivation Fund.

It said that the Federal Government received N194.35 billion, while the state and local governments received N98.58 billion and N76.00 billion, respectively. “The balance of N39.45 billion was distributed to the oil- producing states as 13 per cent Derivation Fund. From the VAT Pool Account, the Federal Government received N9.21 billion, while the state and local governments received N30.69 billion and N21.48 billion, respectively”.

In addition, the sums of N8.57 billion and N5.20 billion were distributed as Exchange Gain and NNPC Additional Revenue among the three tiers of government and the 13 per cent Derivation Fund as follows: “the Federal Government received (N3.93 billion and N2.38 billion), while the state and local governments received (N1.99 billion and N1.21 billion), and (N1.54 billion and N0.93 billion), respectively. The balance of (N1.11 billion and N0.68 billion) was distributed to the oil- producing states as 13 per cent Derivation Fund”.

He added the sum of N6.33 billion was received by the Federal Government from the NNPC in respect of the 6th equal installment refund of indebtedness. “Overall, the total allocation to the three tiers of government from the Federation Account and VAT Pool Account in the review month amounted to N489.85billion, compared with N568.79 billion in the preceding month”, it said.

The apex bank put Nigeria’s crude oil production, including condensates and natural gas liquids at an average of 1.90 million barrels per day (mbd) or 53.2 million barrels for the month.

This was 0.05 mbd or 2.6 per cent below the average of 1.95 mbd or 60.45 million barrels produced in the preceding month.

Crude oil export was estimated at 1.45 mbd or 40.6 million barrels. This represented a decline of 3.3 per cent below the 1.50 mbd recorded in the preceding month. Deliveries to the refineries for domestic consumption remained at 0.45 mbd or 12.6 million barrels during the review month.

At an estimated average of $59.24 per barrel, the price of Nigeria’s reference crude, the Bonny Light (37o API), rose further by 21.9 per cent above the level in the preceding month. The average prices of other competing crudes, namely the U.K Brent at $57.96 per barrel, the West Texas Intermediate at $50.67 per barrel; and the Forcados at $59.62 per barrel, also showed similar trends as the Bonny Light.

The average price of OPEC’s basket of eleven crude streams, at $54.06 per barrel, indicated an increase of 21.8 per cent, but indicated showed a decline of 48.7 per cent below the average of $44.38 and $105.38 per barrel recorded in the preceding month and the corresponding period of 2014, respectively