Economy

Oil/Gas Sector Earnings Drop 2.6% in Q1 2020—CBN

Published

5 years ago

03/08/2020

By Adedapo Adesanya

Earnings from the oil and gas sector dropped 2.6 per cent in the first quarter of 2020 to N1.5 trillion from N1.6 trillion realised in the fourth quarter of 2019, according to data released by the Central Bank of Nigeria (CBN).

In its latest report titled Economic Report for the First Quarter of 2020, the apex bank disclosed that gross oil earnings accounted for 60.3 per cent of N2.5 trillion total federally-collected revenue (gross) in the period under review.

In comparison, at N1.6 trillion, oil revenue accounted for 58.9 per cent of the total federally-collected revenue of N2.7 trillion recorded in the fourth quarter of 2019.

Giving a breakdown of components of oil earnings in the first quarter of 2020, the CBN noted that crude oil and gas exports stood at N172.6 billion, rising by 47.1 per cent from N117.3 billion recorded in the fourth quarter of 2019; while Petroleum Profit Tax/Royalties declined by 6.5 per cent to N838.2 billion from N896.7 billion recorded in the previous quarter.

Other oil revenue also recorded a decline, dropping by 6.8 per cent to N512.2 billion in the first quarter, compared to N549.6 billion recorded in the fourth quarter of 2019.

The CBN noted that, “At N2.527 trillion, federally-collected revenue, in the first quarter of 2020, was lower than the quarterly budget estimate of N3.948 trillion by 36.0 per cent. Similarly, it fell below the receipt in the preceding quarter by 4.8 per cent.

“The decline in federally-collected revenue (gross), relative to the quarterly budget estimate, was attributed to shortfalls in the receipt from both oil and non-oil revenue components during the review period.

“Gross oil receipt, at N1.523 trillion or 60.3 per cent of the total revenue, was below the quarterly budget estimate and the receipt in the preceding quarter by 31.2 per cent and 2.6 per cent, respectively.

“The decline in oil revenue, relative to the quarterly budget estimate, was due to shortfall in the receipt from PPT and royalties.

“Non-oil revenue (gross), at N1.004 trillion or 39.7 per cent of total revenue, fell below the quarterly budget estimate of N1.733 trillion by 42.1 per cent. It also fell below the level in the preceding quarter by 8.0 per cent.

“The lower non-oil revenue, relative to the quarterly budget estimate, was due to the decline in the receipt from Value Added Tax (VAT) and corporate tax.”

The CBN further stated that Nigeria’s crude oil production, including condensates and natural gas liquids, averaged 1.84 million barrels per day or 167.44 million barrels in the first quarter of 2020, representing a decrease of 1.1 per cent, compared with the 1.85 million barrels per day or 170.20 million barrels produced in the preceding quarter.

It disclosed that Nigeria exported an estimated 1.39 million barrels per day of crude oil, representing a decrease of 0.7 per cent, compared with the 1.40 million per day recorded in the preceding quarter.

According to the CBN, the estimated decrease in production was attributed to the aftermath of the December 2019 meeting by the Organisation of the Petroleum Exporting Countries (OPEC) where members and their allies pledged a further production cut by 500,000 barrels per day beginning from January 2020 to stabilise the global crude market.

The apex bank explained that the average spot price of Nigeria’s reference crude oil, the Bonny Light stood at $52.51 per barrel in the first quarter of 2020, representing a decrease of 20.1 per cent and 18.9 per cent below the $65.71 per barrel and $64.75 per barrel recorded in the fourth quarter of 2019 and the corresponding period of 2019, respectively.

Economy

TotalEnergies Sells 10% Stake in Renaissance JV to Vaaris

Published

5 hours ago

14/01/2026

Adedapo Adesanya

By Adedapo Adesanya

TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the divestment of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.

The Renaissance JV, formerly known as the SPDC JV, is an unincorporated joint venture between Nigerian National Petroleum Company Limited (55 per cent), Renaissance Africa Energy Company Ltd (30 per cent, operator), TotalEnergies EP Nigeria (10 per cent) and Agip Energy and Natural Resources Nigeria (5 per cent), which holds 18 licences in the Niger Delta.

In a statement by TotalEnergies on Wednesday, it was stated that under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil.

Production from these licences, it was said, represented approximately 16,000 barrels equivalent per day in company’s share in 2025.

The agreement also stated that TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the three other licences of Renaissance JV which are producing mainly gas, namely OML 23, OML 28 and OML 77, while TotalEnergies will retain full economic interest in these licences, which currently account for 50 per cent of Nigeria LNG gas supply.

Business Post reports that the conclusion of the deal is subject to customary conditions, including regulatory approvals.

“TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the sale of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.

“Under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell to Vaaris its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil. Production from these licences represented approximately 16,000 barrels equivalent per day in the company’s share in 2025.

“TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the 3 other licenses of Renaissance JV, which are producing mainly gas (OML 23, OML 28 and OML 77), while TotalEnergies will retain full economic interest in these licenses, which currently account for 50 per cent of Nigeria LNG gas supply. Closing is subject to customary conditions, including regulatory approvals,” the statement reads in part.

The development is part of TotalEnergies’ strategies to dump more assets to lighten its books and debt.

Economy

NGX RegCo Revokes Trading Licence of Monument Securities

Published

14 hours ago

14/01/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

The trading licence of Monument Securities and Finance Limited has been revoked by the regulatory arm of the Nigerian Exchange (NGX) Group Plc.

Known as NGX Regulations Limited (NGX Regco), the regulator said it took back the operating licence of the organisation after it shut down its operations.

The revocation of the licence was approved by Regulation and New Business Committee (RNBC) at its meeting held on September 24, 2025, a notice from the signed by the Head of Market Regulations at the agency, Chinedu Akamaka, said.

“This is to formally notify all trading license holders that the board of NGX Regulation Limited (NGX RegCo) has approved the decision of the Regulation and New Business Committee (RNBC)” in respect of Monument Securities and Finance Limited, a part of the disclosure stated.

Monument Securities and Finance Limited was earlier licensed to assist clients with the trading of stocks in the Nigerian capital market.

However, with the latest development, the firm is no longer authorised to perform this function.

Economy

NEITI Advocates Fiscal Discipline, Transparency as FG, States, LGs Get N6trn in Three Months

Published

15 hours ago

14/01/2026

Adedapo Adesanya

By Adedapo Adesanya

The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for fiscal discipline and transparency as data showed that federal government, states, and local governments shared a whopping N6 trillion Federation Account Allocation Committee (FAAC) disbursements in the third quarter of last year.

In its analysis of the FAAC Q3 2025 allocation, the body revealed that the federal government received N2.19 trillion, states received N1.97 trillion, and local governments received N1.45 trillion.

According to a statement by the Director of Communication and Stakeholders Management at NEITI, Mrs Obiageli Onuorah, the allocation indicated a historic rise in federation account receipts and distributions, explaining that year-on-year quarterly FAAC allocations in 2025 grew by 55.6 per cent compared with Q3 of 2024 while it more than doubling allocations over two years.

The report contained in the agency’s Quarterly Review noted that the N6 trillion included 13 per cent payments to derivative states. It also showed that statutory revenues accounted for 62 per cent of shared receipts, while Value Added Tax (VAT) was 34 per cent, and Electronic Money Transfer Levy (EMTL) and augmentation from non-oil excess revenue each accounted for 2 per cent, respectively.

The distribution to the 36 states comprised revenues from statutory sources, VAT, EMTL, and ecological funds. States also received additional N100 billion as augmentation from the non-oil excess revenue account.

The Executive Secretary of NEITI, Mr Sarkin Adar, called on the Office of the Accountant General of the Federation, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) FAAC, the National Economic Council (NEC), the National Assembly, and state governments to act on the recommendations to strengthen transparency, accountability, and long-term fiscal sustainability.

“Though the Quarter 3 2025 FAAC results are encouraging, NEITI reiterates that the data presents an opportunity to the government to institutionalise prudent fiscal practices that will protect the gains that have been recorded so far in growing revenue and reduce vulnerability to commodity shocks.

“The Q3 2025 FAAC results are encouraging, but windfalls must be managed with discipline. Greater transparency, realistic budgeting, and stronger stabilisation mechanisms will ensure these resources deliver durable benefits for all Nigerians,” Mr Adar said.

NEITI urged the government at all levels to ensure the growth of Nigeria’s sovereign wealth and stabilisation capacity, by committing to regular transfers to the Nigeria Sovereign Wealth Fund and other related stabilisation mechanisms in line with the fiscal responsibility frameworks.

It further advised governments at all levels to adopt realistic budget benchmarks by setting more conservative and achievable crude oil production and price assumptions in the budget to reduce implementation gaps, deficit, and debt metrics.

This, it said, is in addition to accelerating revenue diversification by prioritising reforms that would attract investments into the mining sector, expedite legislation to modernise the Mineral and Mining Act, support reforms in the downstream petroleum sector, as well as the full implementation of the Petroleum Industry Act (PIA) to expand domestic refining and value addition.