Government receives N3.532 trillion as taxes, royalties

The Federal Government received N3.532 trillion as Petroleum Profits Tax and Royalties from oil companies between the third quarter of 2015 to third quarter of 2017, data from the Central Bank of Nigeria (CBN) has revealed.

Besides, oil producing states in Nigeria received N103.46 billion as 13 per cent Derivation Fund during the third quarter of 2017, as government’s total gross oil revenue within the period under review stood at N7.357 trillion.

According to CBN in its third quarter 2017 Economic Report, the country’s gross oil receipt in third quarter 2017 at N1.27 trillion.

It noted that the third quarter earnings were lower than the proportionate quarterly budget estimate by 6.2 per cent, but was above the receipts in the preceding quarter by 59.7 per cent.

CBN attributed the decline in oil revenue relative to the proportionate quarterly budget estimate to the shortfall in receipts from crude oil/gas exports, owing to the decline in crude oil production, arising from leakages and shut-ins/shut-downs at some of NNPC’s terminals.

The apex bank also put Nigeria’s crude oil production, including condensates and natural gas liquids at 1.83 mbd or 168.36 million barrels (mb) in the review quarter.

This, it noted, represented an increase of 0.17 mbd or 10.2 per cent, compared with 1.66 mbd or 151.06 mb recorded in the preceding quarter, while attributing the impressive development to the sustained peace in the oil production region.

“Crude oil export stood at 1.38 mbd or 126.96 mb, representing 14.0 per cent increase over 1.21 mbd or 110.11 mb in the preceding quarter. The development was due, mainly, to reduced activities of vandals in the Niger Delta region.

“Allocation of crude oil for domestic consumption was maintained at 0.45 mbd or 41.40 million barrels in the review quarter. The average spot price of Nigeria’s reference crude oil-the Bonny Light rose from $50.21 per barrel in the second quarter of 2017 to $52.92 per barrel in the review quarter.

“This represented an increase of 5.4 per cent. The UK Brent at $52.51 per barrel, the West Texas International at $47.39, and the Forcados at $53.09 per barrel exhibited similar trends as the Bonny Light.

“The average price of Organisation of Petroleum Exporting Countries (OPEC) basket of 14 selected crude streams was $49.97/b in the third quarter of 2017.

“This represented an increase of 3.1 per cent and 16.5 per cent relative to the average of $48.47 per barre; and $42.90 per barrel in the preceding quarter and the corresponding quarter of 2016, respectively,” the report noted.

The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, said that the Nigerian Petroleum Development Company is expected to increase Nigeria’s crude oil production by 500,000 barrels per day before 2022.

He disclosed that the company currently produces about 200,000 barrels per day of crude oil, adding that, going by its work programme, “it will increase to 300,000 bpd this year.”