Nigeria’s Oil Revenue Sinks to N945bn, 4-Month Low Despite High Price
June 7, 2022 ADEOLA YUSUF
CBN gives breakdown of Nigeria’s low crude earnings last experienced since January, 2022, at a time Saudi Arabia is earning $1 billion daily from oil.
The Central Bank of Nigeria (CBN) has revealed that federal government earnings from oil sales dropped to a four-month low.
CBN stated this in its latest monthly economic report for January 2022. This is worrisome despite of higher oil prices than projected in the 2022 budget.
According to the CBN data, Nigeria made N945 billion in January, this is 7.8 per cent less than the N1.024 trillion budgeted for the period.
A breakdown of the components of oil revenue showed that no revenue accrued from crude oil and gas exports in January, the second straight month the government has earned nothing from such a major income source. Data shows Nigerian economy is more likely to suffer than gain as oil prices soar.
No money was recorded for oil and gas exports because the Nigerian National Petroleum Company NNPC) has not remitted funds to the joint pool of the federation account in recent months, due to rising petrol subsidy claims, on the back of elevated crude oil prices as well as lower oil production.
Revenue from petroleum profit tax and royalties, which formed the bulk of oil revenue, declined by 31 per cent to N247 billion compared with N360 billion the previous month and was also below the monthly target of N277 billion.
Nigerian oil blends on Monday, 6 June sells at a record high. At $124.18, Bonny light, produced in Oloibiri in the Niger Delta, is currently the most expensive OPEC blend.
A sweet medium-light Nigerian crude, is selling for $126.60, the same price as Qua Iboe crude oil, which is also a Nigerian mix.