Economy

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

Published

6 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

Tinubu Okays Extension of Ban on Raw Shea Nut Export by One Year

Published

3 hours ago

26/02/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

The ban on the export of raw shea nuts from Nigeria has been extended by one year by President Bola Tinubu.

A statement from the Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, on Wednesday disclosed that the ban is now till February 25, 2027.

It was emphasised that this decision underscores the administration’s commitment to advancing industrial development, strengthening domestic value addition, and supporting the objectives of the Renewed Hope Agenda.

The ban aims to deepen processing capacity within Nigeria, enhance livelihoods in shea-producing communities, and promote the growth of Nigerian exports anchored on value-added products, the statement noted.

To further these objectives, President Tinubu has authorised the two Ministers of the Federal Ministry of Industry, Trade and Investment, and the Presidential Food Security Coordination Unit (PFSCU), to coordinate the implementation of a unified, evidence-based national framework that aligns industrialisation, trade, and investment priorities across the shea nut value chain.

He also approved the adoption of an export framework established by the Nigerian Commodity Exchange (NCX) and the withdrawal of all waivers allowing the direct export of raw shea nuts.

The President directed that any excess supply of raw shea nuts should be exported exclusively through the NCX framework, in accordance with the approved guidelines.

Additionally, he directed the Federal Ministry of Finance to provide access to a dedicated NESS Support Window to enable the Federal Ministry of Industry, Trade and Investment to pilot a Livelihood Finance Mechanism to strengthen production and processing capacity.

Shea nuts, the oil-rich fruits from the shea tree common in the Savanna belt of Nigeria, are the raw material for shea butter, renowned for its moisturising, anti-inflammatory, and antioxidant properties. The extracted butter is a principal ingredient in cosmetics for skin and hair, as well as in edible cooking oil. The Federal Government encourages processing shea nuts into butter locally, as butter fetches between 10 and 20 times the price of the raw nuts.

The federal government said it remains committed to policies that promote inclusive growth, local manufacturing and position Nigeria as a competitive participant in global agricultural value chains.

Economy

NASD Bourse Rebounds as Unlisted Security Index Rises 1.27%

Published

3 hours ago

26/02/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange expanded for the first session this week by 1.27 per cent on Wednesday, February 25.

This lifted the NASD Unlisted Security Index (NSI) above 4,000 points, with a 50.45-point addition to close at 4,025.25 points compared with the previous day’s 3,974.80 points, as the market capitalisation added N30.19 billion to close at N2.408 trillion versus Tuesday’s N2.378 trillion.

At the trading session, FrieslandCampina Wamco Nigeria Plc grew by N5.00 to trade at N100.00 per share compared with the previous day’s N95.00 per share, Central Securities Clearing System (CSCS) Plc improved by N4.18 to sell at N70.00 per unit versus N65.82 per unit, and First Trust Mortgage Bank Plc increased by 14 Kobo to trade at N1.59 per share compared with the previous day’s N1.45 per share.

However, the share price of Geo-Fluids Plc depreciated by 27 Kobo at midweek to close at N3.27 per unit, in contrast to the N3.30 per unit it was transacted a day earlier.

At the midweek session, the volume of securities went down by 25.3 per cent to 8.7 million units from 11.6 million units, the value of securities decreased by 92.5 per cent to N80.7 million from N1.2 billion, and the number of deals slipped by 33.3 per cent to 32 deals from the preceding session’s 48 deals.

At the close of business, CSCS Plc remained the most traded stock by value on a year-to-date basis with 34.1 million units exchanged for N2.0 billion, trailed by Okitipupa Plc with 6.3 million units traded for N1.1 billion, and Geo-Fluids Plc with 122.0 million units valued at N478.0 million.

Resourcery Plc ended the trading session as the most traded stock by volume on a year-to-date basis with 1.05 billion units valued at N408.7 million, followed by Geo-Fluids Plc with 122.0 million units sold for N478.0 million, and CSCS Plc with 34.1 million units worth N2.0 billion.

Economy

Investors Lose N73bn as Bears Tighten Grip on Stock Exchange

Published

4 hours ago

26/02/2026

Dipo Olowookere

By Dipo Olowookere

The bears consolidated their dominance on the Nigerian Exchange (NGX) Limited on Wednesday, inflicting an additional 0.09 per cent cut on the market.

At midweek, the market capitalisation of the domestic stock exchange went down by N73 billion to N124.754 trillion from the preceding day’s N124.827 trillion, and the All-Share Index (ASI) slipped by 114.32 points to 194,370.20 points from 194,484.52 points.

A look at the sectoral performance showed that only the consumer goods index closed in green, gaining 1.19 per cent due to buying pressure.

However, sustained profit-taking weakened the insurance space by 3.79 per cent, the banking index slumped by 2.07 per cent, the energy counter went down by 0.24 per cent, and the industrial goods sector shrank by 0.22 per cent.

Business Post reports that 25 equities ended on the gainers’ chart, and 54 equities finished on the losers’ table, representing a negative market breadth index and weak investor sentiment.

RT Briscoe lost 10.00 per cent to sell for N10.35, ABC Transport crashed by 10.00 per cent to N6.75, SAHCO depreciated by 9.98 per cent to N139.35, Haldane McCall gave up 9.93 per cent to trade at N3.99, and Vitafoam Nigeria decreased by 9.93 per cent to N112.50.

Conversely, Jaiz Bank gained 9.95 per cent to settle at N14.03, Okomu Oil appreciated by 9.93 per cent to N1,765.00, Trans-nationwide Express chalked up 9.77 per cent to close at N2.36, Fortis Global Insurance moved up by 9.72 per cent to 79 Kobo, and Champion Breweries rose by 5.39 per cent to N17.60.

Yesterday, 1.4 billion shares worth N46.2 billion were transacted in 70,222 deals compared with the 1.1 billion shares valued at N53.4 billion traded in 72,218 deals a day earlier, implying a rise in the trading volume by 27.27 per cent, and a decline in the trading value and number of deals by 13.48 per cent and 2.76 per cent, respectively.

Fortis Global Insurance ended the session as the busiest stock after trading 193.7 million units for N152.7 million, Zenith Bank transacted 120.7 million units worth N11.1 billion, Japaul exchanged 114.8 million units valued at N407.0 million, Ellah Lakes sold 98.4 million units worth N999.2 million, and Access Holdings traded 63.1 million units valued at N1.7 billion.