Nigeria’s Oil, Gas Revenue Declined By 60% In One Month

Nigeria’s oil and gas revenue fell to N308.07 billion in February 2023 from N774.15 billion in January 2023 representing a 60% decline latest data released by the Central Bank of Nigeria (CBN) has shown.

Despite the decline, CBN, in its Economic Report for February 2023, stated that the oil and gas revenue for the month under review was 47.96 percent higher than the revenue of N208.19 recorded in the sector in February 2022.

The amount published by the CBN was part of the Federation Revenue, belonging to the three tiers of government, Federal, States and Local Governments.

Giving a breakdown of oil revenue, the CBN stated that the country recorded zero revenue from crude oil and gas exports while earnings from petroleum profit tax and royalties stood at N303.19 billion, compared with N767.69 billion and N157.64 billion recorded in January 2023 and February 2022, respectively.

The financial sector regulator further stated that the country recorded zero earnings from domestic crude oil and gas in February 2023, same as in January 2023, compared with N41.92 billion recorded in January 2022.

Earnings from other oil revenue, according to the apex bank, stood at N4.88 billion in the month under review, compared with January 2023 and February 2022’s earnings of N6.46 billion and N8.63 billion, respectively.

The CBN further disclosed that in the month under review, apart from the monies shared by the three tiers of government, oil-producing states shared N32.73 billion under the 13 per cent Derivation fund, compared with N93.52 billion and N58.96 billion recorded in January 2023 and February 2022, respectively.

The CBN explained that: “Gross Federation Account revenue decreased in February due to a slump in oil revenue. At N1.038 trillion, federation receipts were below the level in January by 32.3 percent. Similarly, it was below the budget of N1.580 trillion by 34.3 percent.

“The decline, relative to January, was attributed to a fall in collections from Petroleum Profit Tax and Royalties. Oil revenue, at N308.07 billion, was 60.2 percent below receipts in the preceding month. The outcome was driven, largely, by the 60.5 percent decrease in collections from Petroleum Profit Tax and Royalties.

“Similarly, at N730.21 billion, non-oil revenue was below the level in the preceding month and the monthly target by 3.7 percent and 7.4 percent, respectively. The decrease was largely attributed to the 10.5 percent decline in collections from Corporate Tax on account of the seasonality associated with its payments.”