By Michael Eboh
NIGERIA earned N224.9 billion from petroleum profit tax (PPT) and royalties from the oil and gas sector in January and February 2017, according to latest data released by the Central Bank of Nigeria, CBN.
The CBN in Economic Report for February 2017 released recently also put the country’s total earnings from the oil and gas sector in the month of February 2017 at N292.8 billion, rising by 37.92 per cent from N212.3 billion recorded in the previous month.
Specifically, the report noted that in February, PPT and royalties from the oil and gas sector which stood at N120.1 billion, appreciated by 14.6 per cent from N104.8 billion recorded in January 2017.
However, crude oil and gas export sale dipped slightly by 2.32 per cent to N33.7 billion in February, from N34.5 billion in January 2017.
On the other hand, domestic crude oil and gas sale rose sharply by 100.61 per cent from N65.9 billion in January to N132.2 billion in February.
According to the CBN, domestic crude oil production was estimated at 1.65 million barrels per day (mbd) or 46.2 million barrels during the month, while crude oil export was estimated at 1.20 million barrels per day (mbd) or 33.60 million barrels.
Domestic crude oil production
The report attributed the increased domestic crude oil production recorded in the first two months of the year on sustained efforts by the Federal Government and other stakeholders at curtailing vandalism in the Niger-Delta region.
“The average price of Nigeria’s reference crude, the Bonny Light, was estimated at $55.49 per barrel, indicating a marginal increase of 0.7 per cent relative to the level in the preceding month,” the CBN said.
Continuing, the report disclosed that the external sector marginally strengthened in February 2017 following the increase in domestic oil production and international crude oil prices as well as improved inflow through autonomous sources.
According to the report, the increase in crude oil prices followed the deal reached by the Organisation of Petroleum Exporting Countries (OPEC) members to cut production.
In spite of the improvement in Nigeria’s crude oil output, the CBN, however, noted that foreign exchange supply shortages continued to constrain import of raw materials which suppressed domestic production.
It said, “Consequently, non-oil export receipts declined in the review period. Foreign exchange inflow through the CBN, at $2.37 billion, fell by 8.9 per cent, relative to the level in the preceding month, but was 94.4 per cent above the level in the corresponding period of 2016.
“The development reflected the significant decline in non-oil receipts due to lack of interbank swap transactions and fall in Treasury Single Account, TSA, and third party receipts during the review month.
It further stated that government’s effort at improving crude oil production yielded positive results as output increased further in the review period by 1.9 per cent over the level in January 2017.
Consequently, the CBN report noted that aggregate foreign exchange inflow into the economy was $5.06 billion in February 2017, representing a 6.5 per cent and 17.1 per cent increase above the levels at end-January 2017 and the corresponding month of 2016, respectively.
“The development, relative to the preceding month indicated the increase in inflow from oil export proceeds and autonomous sources. Inflow through the CBN and autonomous sources accounted for 47.0 per cent and 53.0 per cent, respectively,” the CBN said.