Nigeria earned N1.2b from oil in fourth quarter of 2017

The Federal Government earned N1.226 billion from crude oil during the last quarter of 2017, according to the Central Bank of Nigeria (CBN).

Besides, about N115.58 billion was allocated to the 13 per cent Derivation Fund for distribution among the oil-producing States during the period under review.

This was lower than both the proportionate quarterly budget estimate and the receipts in the preceding quarter by 9.1 per cent and 3.5 per cent, respectively.

CBN in its fourth quarter economic report, said the decline in oil revenue in oil revenue relative to the proportionate quarterly budget estimate was attributed to the fall in receipts from crude oil/gas exports.

The apex bank blamed the drop in crude oil production to leakages and shut-ins/shut-downs at some Nigerian National Petroleum Corporation (NNPC) terminals.

Out of the N637.73 billion received by the Federal Government as revenue during the period under review, State and Local governments received N323.47 billion and

N249.38 billion, respectively, while the balance of N115.58 billion was allocated to the 13 per cent Derivation Fund for distribution among the oil-producing states.

According to the CBN, Nigeria’s crude oil production, including condensates and natural gas liquids, averaged 1.80 million barrels per day (mbd) or 165.60 million barrels (mb) in the review quarter.

This, it said, represented a decline of 0.03 mbd or 1.8 per cent, compared with 1.83 mbd or 168.36 mb recorded in the preceeding quarter. The development was due to shut-ins/shut-down in some of the production facilities.

It stated: “Crude oil export stood at 1.35 mbd or 124.20 mb, representing 2.4 per cent decline compared with 1.38 mbd or 126.96 mb in the preceding quarter.

“The development was due, mainly, to continued commitment by OPEC and Non-OPEC countries to avoid flooding the global market, despite the exemption of Nigeria from the production cap agreement. Allocation of crude oil for domestic consumption was maintained at 0.45 mbd or 41.40 million barrels in the review quarter.”

The CBN explained that the average spot price of Nigeria’s reference crude oil, the Bonny Light rose from $52.92 per barrel in the third quarter of 2017 to $62.48 per barrel in the review quarter.

This, it noted, represented an increase of 18.1 per cent. The increase was attributed to the production-cut agreement, demand growth from China and increased refining activity in the United States. “The UK Brent, at $61.69 per barrel, the West Texas Intermediate at $55.47, and the Forcados at $62.60 per barrel exhibited similar trends as the Bonny Light.

“The average price of OPEC basket of fifteen selected crude streams was $59.35 per barrel in the fourth quarter of 2017. This represented increase of 18.8 per cent and 24.9 per cent relative to the average of $49.97 per barrel and $47.52 per barrel in the preceding quarter and the corresponding quarter of 2016, respectively,” it added.

Group Managing Director of NNPC, Dr. Maikanti Baru, said that the corporation is eyeing massive investments in the nation’s oil and gas industry with a view to improving the nation’s revenue and creating jobs for the citizenry. 

Baru said the inland basins exploration was also in line with the goal of fulfilling the presidential mandate of increasing Nigeria’s oil and gas reserves. 

“Upon successful discovery of oil in the nation’s inland basins, we will be able to attract huge oil and gas investments which will not only improve the nation’s revenue streams but also create more business and employment opportunities for Nigerians,” Baru stated.