Latest data from China’s General Administration has revealed that Nigeria, Africa’s largest oil and gas producer, imported its first consignment of petrol from China of about 51,000 mt in January 2019.
According to reports from S&P Global Platts, Nigeria was the fourth-largest buyer of Chinese gasoline in January and also the only buyer outside Asia last month.
Platts noted Nigeria was the second country in Africa to have received gasoline from China, with the first being Togo that got 50,000 mt of petrol in April 2018.
The report noted that PetroChina, China’s largest petrol exporter, had in 2018 set up an office in Nigeria, which could possibly point to the first gasoline cargo landing in the country.
Platts disclosed that China’s petrol exports to African countries also continued to grow, with Mozambique and South Africa climbing to the top 10 destinations in January, receiving 147,000 mt and 82,000 mt of petrol, respectively.
This compared with zero in December and a year earlier for both countries. Exports to Mozambique jumped to 316,000 mt last year from just 7,000 mt in 2017, to be among top 10 destinations for China’s gasoil export.
Over the years the cost of importing fuel seems to be taking a toll on Nigeria economy as the country spent N995.835 billion on the importation of Premium Motor Spirit, PMS, also known as petrol, in the first half of 2018, according to data released by the National Bureau of Statistics (NBS).
Meanwhile, Nigeria’s Gross oil receipt, at N1.4 trillion or 60.7per cent of the total revenue, was below the proportionate quarterly budget estimate by 23.7 per cent, but higher than receipts in the third quarter of 2018 by 5.1per cent.
“Despite the increase in crude oil price, oil revenue declined relative to the proportionate budget owing to shortfalls in crude oil production and exports, arising from maintenance at various NNPC terminals,” CBN Quarterly bulletin said.
Furthermore, the sum of N70 billion was shared as Excess crude/PPT revenue from which Federal, State and Local governments received N32.08billion, N16.27billion, and N12.55billion, respectively. The balance of N9.10was distributed among the oil-producing states
Nigeria’s crude oil production, including condensates and natural gas liquids, averaged 1.86 mbd or 171.12million barrels (mb) during the review quarter representing an increase of 2.2per cent, compared with 1.82mbd or 167.44million barrels at the end of the third quarter of 2018.
“The estimated increase in production was attributed, largely, to gains from sustained partnership with government and stakeholders in the Niger-Delta region and the security measures put in place to forestall production disruption and losses through pipeline vandalism,” CBN Quarterly bulletin said.
Crude oil export averaged1.41mbd, representing an increase of 2.9per cent above1.37 mbd in the preceding quarter.
Allocation of crude oil for domestic consumption was 0.45 mbd or 41.4million barrels during the period under review. The average spot price of Nigeria’s reference crude oil, the Bonny Light (37° API), fell to $69.89/b in the fourth quarter 2018, from US$76.50/bin the preceding quarter representing quarter-on-quarter decrease of 8.6per cent.
“The fall in oil price was attributed mainly, to supply glut in the global market, particularly rising U.S. crude oil inventories. The UK Brent at $68.41/b, WTI at $53.59/b and the Forcados at $69.96/b exhibited similar trend as the Bonny Light,” CBN Quarterly bulletin said.
DIPO OLADEHINDE
