Nigeria Generates N5.54trn Oil Revenue in 2018

• Nigeria Generates N5.54trn Oil Revenue in 2018

Nigeria generated N5.54 trillion from oil revenue in 2018, according to the Central Bank of Nigeria.

The figure published in the CBN economic report revealed that the N5.54 trillion revenue was from the three major oil revenue sources. The sources are listed as crude oil/gas sales, petroleum profit tax/royalties and others.

A breakdown of the report showed a total of N1.28 trillion was earned in the first quarter of 2018.

The figure then rose by N110 billion to N1.38 trillion in the second quarter. In the third and fourth quarters, the country earned N1.39 trillion and N1.46 trillion, respectively.

A further breakdown of the numbers showed the N1.28 trillion revenue earned in the first quarter was through crude oil sales of N98.21 billion; PPT/royalties, N926.33 billion; and others, N263.51 billion.

In the second quarter, the N1.38 trillion was generated through crude oil, N109.32 billion; PPT/royalties, N841.03 billion; and others, N447.7 billion.

For the third quarter, the nation generated N104.49 billion from crude oil sales, N914.56 billion from PPT/royalties and N375.14 billion from others.

While in the fourth quarter, a total of N103.6 billion was earned from crude oil sales, N1.04 trillion from PPT/royalties and N317.5 billion from other oil revenue sources.

The Minister of Finance, Mrs Zainab Ahmed, who spoke at the 2018 conference of the National Council on Finance and Economic Development, said states should up revenue from other sources.

She said, “It is on record that due to persistent domestic fall in oil revenue, over the past years, it became extremely difficult, if not impossible for us to meet duly budgeted obligations.

“This happened because of the age-long over-reliance on oil, even though Nigeria is abundantly endowed with multiple resources, which provide varied sources of revenue.

“There is stupendous potential for diversification of revenue. We can reflect soberly on our national endowments and make conscious efforts to exploit and manage them effectively.

“Let me remind us that we need to develop cost-effective strategies to increase our IGR, reduce unnecessary overhead costs, enthrone fiscal discipline and transparency so as to optimise available limited resources, while efforts are sustained to broaden our revenue base.”