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.
Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd
The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.
The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.
The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.
The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.
Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.
The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.
Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins
Oil Prices Recover from 4 Percent Decline as Joe Biden Wins
Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.
This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.
Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.
On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.
“Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.
“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”
The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.
“There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.
“Either you’re crimping energy demand or consumption behavior.”
Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020
Revenue of OPEC Members to Drop to 18 Year Low in 2020
The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.
EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.
“If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.
The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.
It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.
It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.
“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”
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