According to data obtained from the Central Bank of Nigeria (CBN), Africa’s biggest oil producer has exceeded its revenue target for 2019, racking in a total of N4.6 trillion from Petroleum Profit Tax (PPT) and Royalties in Nigeria oil and gas sector in the first eleven months of 2019,
According to the proposed budget of the 2019 fiscal year, the Federal Government projects about N3.69 trillion as oil revenues. This figure was derived from two presumptions; first, that in the year, oil will sell at a projected $60 per barrel; second, that oil production will hit 2.3 million barrels per day.
BusinessDay analysis of CBN’s latest Economic Report for the month of November revealed Nigeria collected an oil revenue of N4.62 trillion in the first eleven months of 2019, exceeding the 2019 oil revenue target by N93 billion.
In the month of January 2019, Nigeria collected N479.5 billion which increased to N516.9 billion in February, but further dropped to N472.4 billion in April 2019. In May and June, oil revenue dropped down to $410.2 billion and N336.6 billion respectively while July and August oil revenues stood at N387.7 billion and 484.8 billion respectively.
In the month of August, the federal government collected oil revenue of N484.8 billion, while in September, October and November 2019, Nigeria racked in N467.6 billion, N577.3 billion and N489.1 billion respectively.
According to the CBN’s report, the fluctuations stemmed from the pipeline leakages and maintenance exercises that occurred at some terminals of the Nigerian National Petroleum Corporation (NNPC).
For example the N489.09 billion gross oil receipt fell short of the monthly budget by 38.8percent while constituting 56.9percent of the total revenue of N858.9 billion.
The report reads: “Oil receipts, at N489.08bn or 56.9 percent of total revenue, were below both the monthly budget of N798.83bn and the preceding month’s receipts of N577.3bn by 38.8 percent and 15.3 percent respectively.
“The decrease in oil revenue, relative to the monthly budget estimate, was attributed to shut-ins and shutdowns at some NNPC terminals, due to pipeline leakages and maintenance activities.”
The CBN stated that the nation’s crude oil production, comprising condensates and natural gas liquids translated to 1.91 million barrels per day or 57.3 million barrels in November 2019.
It indicates a marginal drop of 0.02mbd or 1.04percent from the 1.93mbd produced in October 2019.
Nigeria’s oil and gas industry remains it’s most lucrative and viable investment opportunities as stakeholders believe that the oil and gas sector offers consistent opportunities in solving Nigeria’s dwindling revenue.
The economy, Africa’s largest, expanded by 0.17percent in the previous quarter and 0.47percent in the same period a year earlier. The country has struggled to shake off the effects of a 2016 recession that ended the following year.
Experts in the oil and gas sector ranked reforming fiscal and regulatory terms by passing into law a competitive petroleum industry bill as the most urgent task needed to make an oil sector record a two digits growth rate. Next is domesticating the value chain and also ensuring the oil and gas sector provides linkages across the economy.
With crude oil prices fluctuating recently, President Muhammadu Buhari’s administration has repeatedly promised to diversify the economy by developing its non-oil sectors.
DIPO OLADEHINDE
