By Adedapo Adesanya
Nigeria’s earnings from the petroleum industry rose by 53.2 per cent to N401.9 billion from N262.4 billion recorded in the previous month, according to the latest data obtained from the Central Bank of Nigeria (CBN).
The amount is, however, 17.1 per cent lower than the N484.8 billion gross oil revenue recorded in August 2019.
The CBN, in its Economic Report for August 2020, further stated that oil revenue accounted for 52.4 per cent of total federation revenue compared to 35.1 per cent of total revenue in July 2020 and 52.9 per cent in August 2019.
The country earned N296.2 billion from Petroleum Profit Tax (PPT) and Royalties, accounting for 73.7 per cent of total oil revenue, while domestic crude oil and gas sales accounted for 17.5 per cent of total oil revenue, with N70.2 billion.
Crude oil and gas exports fetched the country N24.3 billion, representing 6.0 per cent of total oil earnings, while other oil earnings stood at N11.4 billion.
In comparison, in July 2020, the country earned N40.1 billion from crude oil and gas exports; N145.2 billion and N68.4 billion from PPT and Royalties and domestic crude oil and gas sales, respectively, while other oil earnings stood at N8.6 billion.
In August 2019, the country earned N28.4 billion, N321.4 billion, N130.5 billion and N4.4 billion from crude oil and gas exports, PPT and Royalties, domestic crude oil and gas and other oil earnings, respectively.
In general, the CBN stated that total federally collected revenue in August 2020 rose by 2.7 per cent to N767.55 billion compared with its level in July 2020, but was below the budget benchmark by 9.4 per cent.
The CBN attributed the increase to improved receipts from oil revenue sources, noting that retained revenue of the federal government in August 2020 was N290.3 billion, while total expenditure stood at N699.7 billion, resulting in a deficit of N409.4 billion.
The CBN noted that total FGN debt outstanding at end-June 2020, stood at N31.01 trillion, with the domestic and external components accounting for 63.4 per cent and 36.6 per cent, respectively.
The CBN disclosed that the price of Nigeria’s reference crude, Bonny Light, averaged $45.06 per barrel in August 2020, compared with $44.10 per barrel in July 2020, as global energy demand inched up, due to the easing of lockdown measures across countries.
It said: “In the same vein, crude oil production increased to 1.75 million barrels per day, mbpd, in the review period, compared with 1.55 mbpd in July 2020. Gas exports, on the other hand, decreased by 2.0 per cent to US$0.30 billion in August 2020, relative to $0.31 billion in July 2020. The crude oil and gas component remained dominant and accounted for 85.1 per cent of total exports.”
In addition, the CBN projected that: “Considering the gradual easing of restrictions, improved revenue collection, due to an uptick in economic activities in some advanced economies, and a gradual recovery in oil price, oil exports are expected to rebound with an attendant boost in government revenue.”
Dipo Olowookere