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Oil Earnings Drop by 29 Percent to N790 Billion – CBN

Crude oil revenue crashed by 29 per cent in the first quarter of 2022, according to statistics from the Central Bank of Nigeria.

The CBN, in its latest economic and statistical report for the first quarter of 2022, stated that earnings from crude oil dropped to N790bn from N1.1trn recorded in the previous quarter, which was from October to December 2021.

Nigeria’s crude oil and gas earnings in the first quarter of 2022 was also 17.1per cent lower than the N956bn revenue recorded in the same period in 2021.

According to the report, oil revenue for the first quarter of 2022 accounted for 38 per cent of the country’s gross revenue, which stood at N2trn in the period under review, while non-oil revenue, at N1.1trn, accounted for 62 per cent of total earnings.

In comparison, in the fourth quarter of 2021, oil revenue accounted for 46 per cent of gross revenue, same as the first quarter of 2021,.

In January 2022, Nigeria earned N330bn. The country raked in N199bn and N261bn in February and March 2022, respectively.

A further breakdown of the earnings showed that in the first quarter of 2022, earnings from crude oil sales stood at N153 bn, compared to N234bn and N412bn recorded in the fourth and first quarters of 2021, respectively.

The CBN said the country did not record any earnings from gas sale in the first quarter of 2022, same as in the previous quarter, while earnings from oil and gas royalties, rent and gas flare penalties fetched the country N343.881 billion, N2.382 billion and N19.323 billion, respectively.

It added that earnings from miscellaneous, pipeline fees and other oil and gas revenue stood at N4bn, while Petroleum Profit Tax and gas tax fetched the country N267bn in revenue.

Comparatively, in the first quarter of 2021, earnings from the oil and gas sector stood at N315bn, N297bn and N344bn for January, February and March, respectively.

The CBN reported that after various deductions, “net oil revenue before 13% derivation” stood at N487bn, while net oil revenue after 13 per cent derivation stood at N375bn.

The Group Chief Executive Officer, Nigerian National Petroleum Corporation, Mele Kyari, on Tuesday, identified oil theft as a major reason for the dip in production which ultimately led to low revenue.

According to him, Nigeria loses 700, 000 barrels of crude oil daily to oil theft.

President, Society of Petroleum Engineers,  Prof Olalekan Olafuyi,  told The PUNCH in an interview that the group was already discussing with the Nigerian Maritime Administration and Safety Agency, NIMASA, on strategies for monitoring crude oil theft.

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