What CBN's recent report reveals about oil and gas sales in Nigeria in 2017

Posted by Rachel Madison on 2018-02-13 12:06:00 | Views: 6 |

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What CBN's recent report reveals about oil and gas sales in Nigeria in 2017

- The Central Bank of Nigeria has revealed that oil and gas sales in the country rose drastically by N831 billion in 2017 as against N389.55 billion recorded in 2016

- CBN's report showed that the country recorded gross oil revenue of N4.11 trillion in 2017, appreciating by N1.42 trillion

- The bank however blamed the decrease in Nigeria’s crude oil output on the instability of some production facilities across the oil-producing states in the country

From a recent data released by the Central Bank of Nigeria (CBN), crude and oil gas sales rose sharply to N1.22 trillion in 2017.

The CBN, in its economic report for the fourth quarter of 2017, disclosed that the amount earned by the federation from crude oil and gas sales in 2017, appreciated by 213.6% or N831 billion as against N389.55 billion recorded in 2016.

The report stated that the total crude oil and gas sales in 2017 accounted for 29.7 % of gross oil revenue in the same year.

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The report revealed that the country recorded gross oil revenue of N4.11 trillion in 2017, appreciating by 52.5%, from N2.7 trillion recorded in 2016. The report explained: “Gross oil receipt at N1.226 trillion or 60.1 per cent of the total revenue, was lower than both the proportionate quarterly budget estimate and the receipts in the preceding quarter by 9.1 per cent and 3.5 per cent, respectively, Vanguard reports.

"The decline in oil revenue relative to the proportionate quarterly budget estimate was attributed to the fall in receipts from crude oil/gas exports. This was due to the drop in crude oil production, arising from leakages and shut-ins/shut-downs.”

The bank blamed the reduction in Nigeria’s crude oil output on shut-ins/shut-down in some of the production facilities across the oil-producing states in the country, adding that Nigeria’s crude oil export for the fourth quarter of 2017 dipped by 2.4 per cent, from 126.96 million barrels or an average of 1.38 million barrels per day in the third quarter of 2017 to 124.20 million barrels or 1.35 million barrels per day.

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It said: “The development was due, mainly, to continued commitment by OPEC and Non-OPEC countries to avoid flooding the global market, despite the exemption of Nigeria from the production cap agreement.”

The report further revealed that allocation of crude oil for national consumption was maintained at 0.45 million barrels per day or 41.40 million barrels in the entire fourth quarter.

The CBN also noted: “The average spot price of Nigeria’s reference crude oil, the Bonny Light (37° API) rose from $52.92 per barrel in the third quarter of 2017 to $62.48 per barrel in the review quarter. This represented an increase of 18.1%.

“The increase was attributed to the production-cut agreement, demand growth from China and increased refining activity in the United States. The UK Brent, at $61.69 per barrel, the WTI at $55.47, and the Forcados at $62.60 per barrel exhibited similar trends as the Bonny Light.”

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The report disclosed that as a result of this, a net sum of N1.326 trillion was retained in the federation account after statutory deductions and transfers, adding that of this amount, the federal government received N637.73 billion, 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% derivation fund for distribution among the oil-producing states.

It also made it known that the federal, state and local governments got N36.50 billion, N121.66 billion and N85.16 billion, respectively, from the Value Added Tax, VAT, pool account.

Meanwhile, NAIJ.com reported that Nigerian lawmakers ordered an investigation on Thursday, January 18, into whether the government could recover $21 billion in revenues from international oil companies.

From Reuters' report, the minister of state for petroleum, Emmanuel Ibe Kachikwu, said that the government had failed to enforce a legal provision entitling it to a greater share of crude sales once the price exceeded $20 a barrel.

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Source: Naija.ng

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