Nigeria’s oil sector earns N817.48b in first quarter
At N817.48 billion, Nigeria’s gross oil receipt is lower than the provisional quarterly budget estimate by 7.5 per cent during the first quarter (Q1) of 2017, according to the Central Bank of Nigeria (CBN).
The decline in oil revenue relative to the budget estimate was attributed to the persistent fall in receipts from crude oil/gas export, due to the continuous drop in the price of crude oil in the international market. This was compounded by a series of shut-ins and shut-downs at some Nigerian National Petroleum Corporation (NNPC) terminals, owing to pipeline vandalism, and repairs during the review quarter.
The CBN in its 2017 quarterly economic report released recently, put the federally-collected revenue in the Q1 also fell short of the 2016 provisional quarterly budget estimate by 36.3 per cent.
The apex bank put the Federal Government provisional retained revenue in Q1 at N608.11 billion, while total provisional expenditure was N1.675 billion, resulting in estimated deficit of N1.067 billion.
The decline in federally-collected revenue (gross) relative to the budget estimate, the CBN noted, is as a result of the shortfall in receipts from both oil and non-oil revenue during the review quarter.
It disclosed that Nigeria’s crude oil production, including condensates and natural gas liquids, averaged 1.59million barrels/day (mbd) or 143.10million barrels (mb). This represented an increase of 0.05 mbd or 3.2per cent, compared with 1.54 mbd or 141.68mb recorded in the preceding quarter.
Also, crude oil export stood at 1.14mbd or 102.6mb, representing an increase of 4.6 per cent, compared with 1.09mbd or 100.28 mb recorded in the previous quarter.
The development was due mainly to the temporary shutdown of the Nembe Creek Line, which exports Bonny Light crude oil to allow for repairs. Allocation of crude oil for domestic consumption was maintained at 0.45 mbd or 40.50 million barrels in Q1.
The estimated index of mining production in Q1 rose by 0.01 per cent to 63.1 (1990=100), compared with the level attained in the preceding quarter. It fell by the same value relative to the corresponding period of 2016. The increase in mining production was accounted for by the increase in crude oil and gas production.
Estimated average electricity generation in Q1 equally rose by 0.09 per cent to 3,500 megawatt hour MW/h, compared with the level attained in the preceding quarter.
The increase was attributed to the slight boost in gas supply to the thermal stations, as well as the slight increase in water supply to the hydro stations.
At 2998 MW/h, average estimated electricity consumed also rose by 0.08 per cent, compared with the level attained in the preceding quarter. The increase was attributed to an improvement in generation and transmission.
The Minister of State, Petroleum Resources, Ibe Kachikwu, said the insecurity in the region was undermining the nation’s capacity to realise its full potential in oil production.
“It is important we continue to sustain the institutional engagement and negotiations which are key to the development of the region. Our target is zero militancy by the middle of 2017, and an incident reduction in the region by 90 per cent by 2018. We must resolve current militancy problems and bring back oil production to 2.2 million barrels per day,” he said.