By Michael Eboh
ABUJA — Nigeria’s economy suffered severe shock in the second quarter of 2015 from the impact of the low price of crude oil in the international market, as data obtained from the Central Bank of Nigeria, CBN, yesterday, revealed that the country’s oil revenue dipped by N372 billion in three months, between April and June.
CBN, in its Economic Report for the Second Quarter of 2015, also disclosed that the country’s non-oil revenue depreciated by N197.78 billion, while total federally-collected revenue dropped by N569.54 billion in the quarter under review.
Specifically, CBN noted that the country, in its gross federation revenue account, recorded oil revenue of N839.02 billion, dropping by 30.7 percent from oil revenue of N1.211 trillion recorded in the first quarter of 2015.
Despite the drop, oil revenue accounted for 56.5 percent of total receipts in the period under review, while it was 38.2 percent lower than the 2015 second quarter budget estimate.
Non-oil revenue in the second quarter of 2015 stood at N646.72 billion, dropping by 23.42 percent from N844.5 billion in the first quarter of 2015. Non-oil revenue also accounted for 43.5 percent of total receipts in the period under review.
As a result of the decline in oil and non-oil revenue, CBN report stated that “total federally-collected revenue during the second quarter of 2015 stood at N1.486 trillion, reflecting a decline of 39.2 and 27.7 percent, compared with the provisional quarterly budget estimate of N2.445 trillion and receipts of N2.055 trillion in the preceding quarter, respectively.”
It attributed the fall in oil receipts to the decline in receipts from Petroleum Profit Tax, PPT, and royalties, owing to the persistent fall in global crude oil prices.
Giving a breakdown of components of the country’s oil revenue, the report disclosed that earnings from crude oil and gas sales dropped by N58.69 billion or 21.4 percent to N215.4 billion from N274.09 billion, recorded in the first quarter of 2015.
Earnings from PPT and royalties stood at N325.03 billion, dropping by N248.27 billion or 43.31 percent from N573.3 billion, recorded in the first quarter.
Furthermore, the report put Nigeria’s average crude oil production, including condensates and natural gas liquids in the second quarter, at 1.91 million barrels per day, mbd, or 173.81 million barrels in the quarter, adding that deliveries to refineries for domestic consumption remained at 0.45 mbd or 40.95 million barrels.