By Michael Eboh
Nigeria’S earnings from crude oil and gas, Petroleum Profit Tax (PPT) and Royalties declined by 34.1 percent, to N205.05 billion in the first quarter of 2016, according to data released by the Central Bank of Nigeria, CBN. The CBN, in its Economic Report for the First Quarter of 2016, indicated that the country earned N396.47 billion from the sale of crude oil and gas, PPT and Royalties, as against N601.52 billion recorded in the fourth quarter of 2015.
The amount earned from the items was also 53.21 per cent or N450.92 billion lower than the N847.39 billion recorded in the first quarter of 2015. Giving a breakdown of the figures, the report stated that the country earned N82.43 billion in the first quarter of 2016, dropping by 61.28 per cent from N212.86 billion recorded in the previous quarter and 69.93 per cent lower than the N274.09 billion recorded in the first quarter of 2015.
In addition, the country earned N314.04 billion from PPT and Royalties, down by 19.2 per cent and 45.22 per cent from N388.66 billion and N573.30 billion recorded in the fourth quarter of 2015 and the first quarter of 2015 respectively.
According to the report, the decline in oil revenue relative to the budget estimate was attributed to the persistent fall in receipts from crude oil and gas export, due to the continuous drop in the price of crude oil in the international market as well as series of shut-ins and shut-downs at some NNPC terminals owing to pipeline vandalism and repairs during the review quarter.
In addition, the report noted that Nigeria’s crude oil production, including condensates and natural gas liquids, was estimated at an average of 1.82 million barrels per day (mbd) or 165.62 million barrels (mb) for the first quarter of 2016. On the other hand, the report noted that crude oil export was estimated at 1.37 mbd or 124.67 million barrels, while deliveries to the refineries for domestic consumption remained at 0.45 mbd or 40.95 million barrels during the under review quarter.
The CBN noted that the average price of Nigeria’s reference crude, the Bonny Light (370 API), fell by 22.0 per cent in the first quarter, compared with level in the fourth quarter of 2015. Generally, the report put gross federally-collected revenue in the first quarter of 2016 at N1.269 trillion, lower than the 2015 quarterly budget estimate of N2.445 trillion by 48.1 per cent.
“This was also below the receipts in the fourth quarter of 2015 by 18.0 per cent. The decline in federally-collected revenue (gross) relative to the budget estimate was attributed to the shortfall in receipts from both oil and non-oil revenue during the review quarter,” the report noted.
The report added that the decline in federally-collected revenue (gross) relative to the budget estimate was attributed to the shortfall in receipts from both oil and non-oil revenue during the review quarter. Continuing, the CBN said, “At N602.46 billion or 47.5 per cent of total revenue, gross non-oil receipts fell below the provisional budget estimate and receipts in the fourth quarter of 2015 by 44.6 and 16.0 per cent, respectively.
“The decline in non-oil revenue relative to the provisional budget estimate was due, largely, to the fall in receipts from all of its components except Customs Special Levies (Non-Federation Account) during the review quarter.”