In spite of the severe impact of the COVID-19 pandemic on crude oil prices, Nigeria still made N3.4 trillion revenue from oil in eight months ended August 2020.
Oil revenue accounts for about 60% of total federally collected revenue in Nigeria. As a result, it determines government ability to fund the annual budgets and provide public services including health and education, as well as infrastructure.
However, the N3.4 trillion revenue from oil from January to August 2020, represents slight reduction of 1.35% from the N3.5 trillion that was made from oil during the corresponding period of 2019.
This imply that the sharp decline in crude oil prices caused by the pandemic made little impact on Nigeria’s earnings from oil. Crude price fell sharply from $66.7 per barrel (pb) in January 2020 to US$14.3 pb in April 2020. The decline was caused by slump in global demand for crude oil as well as the Russia-Saudi trade impasse.
Analysis of monthly economic reports of the Central Bank of Nigeria (CBN) show that the N3.4 trillion oil revenue from January to August comprise: N298.6 billion from Crude oil & Gas Exports, up from N252.48 billion in same of period of 2020; N2.32 trillion from Petroleum Profit Tax (PPT) and Royalties, down from N2.1 trillion in same period of 2019; N1.01 trillion from Domestic Crude Oil & Gas Sales, up from N871.7 billion in 2019; and N70.6 billion from Other oil related income, up from N68.8 billion in 2019.
In January, Nigeria made N556.8 billion from oil comprising: Crude oil & gas exports N57.1 billion; PPT & Royalties N 301.4 billion; Domestic Crude Oil & Gas sales N 189.3 billion; and Others N 9.0 billion.
In February, the oil revenue fell by 10.81% to N496.6 billion from N 556.8 billion in January. The oil revenue in February comprised: crude oil & Gas exports N 66.3 billion; PPT & Royalties N 284.2 billion; Domestic Crude Oil & Gas sales N 138.6 billion; and Others N 7.6 billion.
The nation’s oil revenue declined further by 5.4% in March to N469.59 billion from N496.6 billion in February. The oil revenue in March comprised: crude oil & Gas exports N 49.22 billion; PPT & Royalties N 259.63 billion; Domestic Crude Oil & Gas sales N 148.53 billion; and Others N 12.20 billion.
Oil revenue however rose by 11.1% in April to N528.43 billion from N469.59 billion in March. The oil revenue in April comprise: crude oil & gas exports N 34.57 billion; PPT & Royalties N 334.90 billion; Domestic Crude Oil & Gas sales N 147.15 billion; and Others N 11.81 billion.
Oil revenue however fell again by 27.5% in May to N382.91 billion, reflecting the severe impact of COVID-19 pandemic on crude oil prices. The oil revenue in May comprise: crude oil & gas exports N20.82 billion; PPT & Royalties N 228.97 billion; Domestic Crude Oil & Gas sales N 129.06 billion; and Others N 4.05 billion.
The fall in oil revenue continue in June with 6.1% decline to N359.47 billion from N382.91 billion in May. The N359.47 oil revenue in June comprise: crude oil & Gas exports N 6.16 billion; PPT & Royalties N226.51 billion; Domestic Crude Oil & Gas sales N 120.82 billion; and Others N5.98 billion.
Oil revenue fell further by 27% to N 262.38 billion in July, the lowest for the year, from N359.47 billion recorded in June. The oil revenue in July comprise: Crude oil & Gas exports N40.14 billion; PPT & Royalties N145.24 billion; Domestic Crude Oil & Gas sales N 68.42 billion; and Others N 8.58 billion.
The nation’s oil revenue however rebounded in August with 34.7% increase to N401.98 billion comprising Crude oil & Gas exports N 24.28 billion; PPT & Royalties N 296.17 billion; Domestic Crude Oil & Gas sales N 70.15 billion; and Others N 11.38 billion.
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