Nigeria earned N1.2b from oil in fourth quarter of 2017- CBN

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Central Bank of Nigeria (CBN) has disclosed that the Federal Government earned N1.226 billion from crude oil during the last quarter of 2017.

 

 

 

It added that about N115.58 billion was allocated to the 13 percent Derivation Fund for distribution among the oil-producing States during the period under review.

The figure was lower than both the proportionate quarterly budget estimate and the receipts in the preceding quarter by 9.1 percent and 3.5 percent, respectively.

CBN in its fourth-quarter economic report says the decline in oil revenue relative to the proportionate quarterly budget estimate was attributed to the fall in receipts from crude oil/gas exports.

The apex bank blamed the drop in crude oil production to leakages and shut-ins/shut-downs at some Nigerian National Petroleum Corporation (NNPC) terminals.

Out of the N637.73 billion received by the Federal Government as revenue during the period under review, State and Local governments received N323.47 billion and N249.38 billion, respectively, while the balance of N115.58 billion was allocated to the 13 percent Derivation Fund for distribution among the oil-producing states.

CBN said, Nigeria’s crude oil production, including condensates and natural gas liquids, averaged 1.80 million barrels per day (mbd) or 165.60 million barrels (mb) in the review quarter.

This, it said, represented a decline of 0.03 mbd or 1.8 percent, compared with 1.83 mbd or 168.36 mb recorded in the preceding quarter. The development was due to shut-ins/shut-down in some of the production facilities.

It stated: “Crude oil export stood at 1.35 mbd or 124.20 mb, representing 2.4 percent decline compared with 1.38 mbd or 126.96 mb in the preceding quarter.

The development was due, mainly, to a continued commitment by OPEC and Non-OPEC countries to avoid flooding the global market, despite the exemption of Nigeria from the production cap agreement. Allocation of crude oil for domestic consumption was maintained at 0.45 mbd or 41.40 million barrels in the review quarter.”

The CBN explained that the average spot price of Nigeria’s reference crude oil, the Bonny Light rose from $52.92 per barrel in the third quarter of 2017 to $62.48 per barrel in the review quarter.

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