Nigeria earned about N3.549 trillion from the oil and gas sector in eleven months, between January and November 2015, according to data obtained from the Central Bank of Nigeria, CBN.
In an analysis of receipts in the Federation Account, the CBN, in its Monthly Economic for November 2015, said oil revenue accounted for 54.73 per cent of total federally-collected revenue of N6.484 trillion during the period, while non-oil revenue of N2.935 trillion made up 45.3 per cent.
On a month-by-month basis, the CBN report revealed that from January to June, the country earned N486.4 billion, N359.7 billion, N364.6 billion, N286.2 billion, N267.2 and N285.6 billion respectively, while N369.4 billion, N314.9 billion, N265.2 billion, N271.1 and N278.3 billion were earned in July, August, September, October and November 2015 respectively.
Gross federally-collected revenue for January 2015 stood at N692.1 billion; February, March, April, May and June recorded N554.8 billion, N808.7 billion, N472.2 billion, N462.5 and N462.6 billion respectively. For the months of July, August, September, October and November, gross federally-collected revenue stood at N679.3 billion, N682.6, N543.9, N478.2 billion and N646.6 billion respectively.
Further breakdown of components of gross oil revenue, the CBN disclosed that Nigeria earned N822.2 billion from crude oil and gas sales; Petroleum Profit tax and Royalties fetched N1.39 trillion; while N1.241 trillion and N91.7 billion came from domestic crude oil/gas sales and other unlisted items respectively.
Specifically, in November, the CBN said from the gross federally-collected revenue, a net distributable balance of N388.59 billion, excluding Value Added Tax and other transfers, was retained in the Federation Account. It added that the retained amount was distributed as follows: the Federal Government N191.99 billion; states N97.38 billion; and local governments N75.08 billion, while the balance of N24.14 billion, was shared among the oil producing states as 13% Derivation Fund.
It also explained that from the VAT Pool Account, the Federal Government received N8.67 billion; while state and local governments received N28.89 billion and N20.23 billion, respectively.
It said: “In addition, the sum of N7.00 billion was distributed as Exchange Gain as follows: the Federal Government N3.46 billion; state and local governments N1.75 billion and N1.35 billion, respectively.
“The balance of N0.43 billion was distributed to the oil-producing states as 13.0 per cent Derivation Fund. Furthermore, the sum of N6.33 billion was received by the Federal Government in respect of the 15th equal installment refund by the NNPC.
“Overall, total allocation to the three tiers of government, from the Federation and VAT Pool Accounts, in November 2015, amounted to N459.71 billion, compared with N380.48 billion, in the preceding month.”
Continuing, the CBN said the N646.56 billion gross federally-collected revenue in November, was lower than the monthly budget estimate by 20.7 per cent, but exceeded the receipt in the preceding month by 35.2 per cent.
The CBN attributed the shortfall in gross federally-collected revenue relative to the monthly budget estimate to the decline in receipts from oil revenue during the review month.
Oil Slips With Energy Prices in Europe Halts Record Rally
Oil dipped toward $72 a barrel in New York after prices of energy commodities in Europe halted a record-breaking run.
West Texas Intermediate futures fell 0.6%, having reached the highest intraday level since early August on Wednesday. A rally in European gas and power prices to unprecedented levels was set to end as industries were starting to curb consumption. The surge in energy rates could temporarily boost diesel demand by as much as 2 million barrels a day as consumers switch fuels, according to Citigroup Inc.
Still, the bullish signals for oil are continuing to increase. U.S. crude inventories dropped by more than 6 million barrels last week to a two-year low, according to government figures, as coronavirus vaccination programs permit economies to reopen. Chevron Corp. Chief Executive Officer Mike Wirth warned that the world is facing high energy prices for the foreseeable future.
The investor optimism is showing up in key oil time spreads widening. Trading of bullish Brent options also surged to a two-month high on Wednesday.
Prices have been pushed higher in recent days “by supply outages combined with expectations of switching from gas to oil in the power sector,” said Helge Andre Martinsen, a senior oil market analyst at DNB Bank ASA. “We still believe in softer prices toward year-end and early next year as curtailed production returns and OPEC+ continues to increase production.”
Strong prices for gas, liquefied natural gas and oil are expected to last “for a while” as producers resist the urge to drill again, Chevron’s Wirth told Bloomberg News. Norway’s Equinor ASA said Thursday it also expects European gas prices to remain high over winter.
Fuel Scarcity: Petrol Sells N220 Per Litre in Nsukka
Premium Motor Spirit, otherwise called petrol, now sells for between N200 and N220 per liter at the independent marketers’ service stations in Nsukka, Enugu State.
The News Agency of Nigeria is reporting the hike in the price against the official pump price of N162 per liter.
It said it started about a fortnight ago due to the scarcity of the commodity in the town and its environs.
Some residents of the town expressed deep worry over the development in separate interviews with NAN on Wednesday.
A civil servant, Stephen Ozioko, said the situation had further compounded the economic difficulties in the area.
Ozioko said many private car owners had been compelled to park their vehicles at home and move around in public transport.
He said: “Since the scarcity started, I decided to park my car and take public transport to the office and back home. N220 per liter is exorbitant and I cannot afford it considering my salary as a civil servant. I shall continue to use public transport until the situation returns to normal.”
A building material dealer, Timothy Ngwu, said the development had also led to an increase in transport fare in the area.
Ngwu said: “Some people now trek from Nsukka Old Park to Odenigbo Roundabout because of the 100 percent hike in fares from N50 to N100 by tricycle.
“Before now, transport fare from Nsukka to Enugu was N500, but transporters now charge between N800 and N1000.”
Also, a commuter bus driver, Victor Ogbonna, described the scarcity and hike in the price of petrol as “unfortunate and an ugly development”.
Ogbonna added: “Today, only a few filling stations are selling the commodity in Nsukka town, while others are shut.”
He alleged that some filling stations, which claimed to be out-of-stock, were selling to black marketers at night.
He said: “This is why black marketers have sprung up everywhere in the town, selling the commodity for about N300 per liter.”
NAN reports that virtually all the major marketers in the area have stopped the sale of petrol, claiming to be out-of-stock.
The people called on the government to urgently intervene in order to bring the situation under control and also put an end to its harsh economic effects on the messes.
DPR Targets N3.2T Revenue by Year-End
Nigeria’s Department of Petroleum Resources (DPR) will hit the N3.2 trillion revenue target by December 2021, according to its Director/ Chief Executive Officer, Mr Sarki Auwalu.
Auwalu made the disclosure when he led a delegation of the DPR management team to the Executive Secretary of Petroleum Technology Development Fund (PTDF), Mr Bello Gusau, in Abuja on Wednesday.
He said that 70 percent of the revenue projection had already been met. “Last year, we exceed our revenue budget. We were given N1.5 trillion but we were able to generate N2.7trillion.
“This year, our revenue budget was N3.2 trillion. By the end of August 2021, we have generated up to 70 per cent.
“So, we with September, October, November and December, it is only the 30 per cent that we will work over,’’ he said
He noted that the government took advantage of fiscal terms within the old and new legislation, thereby creating a level of increased signature bonuses.
“We reorganise the work programme that is normally being done in the DPR to key into the new operational structure as we see it in the bill, now an act.
“That programme is being handled by the planning and strategic business unit as against what we use to have because the entire work programme is supposed to show not only technical but also commercial and viability of oil fields and to guarantee the return on investment for investors.
“We have also created an economic value and benchmarking unit to key into the new fiscal provisions of the PIA,’’ he said.
Commenting on capacity, Auwalu said the country stands at the advantage of exporting skills to emerging oil and gas countries across Africa with proper implementation of the newly passed Petroleum Industry Act.
This, he said, the DPR was ready to partner with the Fund to continue to build capacity in the oil and gas sector
He noted that the Federal Government was determined to create leeway that would encourage investors and drastically improve the nation’s petroleum industry.
He further noted that no fewer than 300 legal battles in the oil and gas industry in Nigeria, which had been stalled for the past 20 years in courts, had been resolved through alternative dispute resolution.
According to Auwalu, the DPR is strategising well to ensure effective implementation of the PIA.
Responding, Gusau commended the DPR for enabling the industry and enhancing business activities in the oil and gas sector.
He said that DPR remained the head of the oil and gas industry in Nigeria adding that the Fund was grateful to benefit from the wealth of ideas from DPR.
“The last time we visited, we had a good discussion and issues raised are being implemented like tracking the inflow of funds in signature bonus accounts.
“We extended the meeting and involved ministry of Finance, Accountant General office and even the Central Bank of Nigeria (CBN).
“Sitting at field development plans and attending significant meetings, helped us to know where and what the industry is trying to do and it also helps to inform our decisions in training and capacity plans,’’ he said
He urged the DPR to continue on its effort to ensure an efficient and productive petroleum industry in Nigeria
He assured collaboration with all as the head of the implementation committee of the Petroleum Industry Act. (NAN)
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