This significant development was highlighted in the latest edition of the Central Bank of Nigeria’s (CBN) quarterly statistical bulletin.
The data revealed that the government successfully accrued N3.09 billion from crude oil transactions in September 2023.
This noteworthy stride becomes significant as the last recorded revenue from this source was in August 2022, amounting to a modest N563 million.
The CBN’s data however did not reveal any cheering news in the natural gas sector, where the country has seen virtually no revenue for almost two years.
Although the revenue garnered from crude oil sales in September 2023 is significant, it only constitute a mere 1.30% of Nigeria’s gross oil revenue for the month, which was about N238.02 billion.
The major source of oil revenue for the government in that month was for miscellaneous payments that include pipeline fees, making a total of about N108 billion.
Following closely, oil and gas royalties made a considerable impact, adding N80.17 billion to the government’s coffers. This figure underscores the ongoing importance of royalties in Nigeria’s oil and gas revenue landscape.
The Petroleum Profit Tax (PPT) was another noteworthy contributor, bringing in N41.6 billion in September 2023. The PPT, a critical fiscal instrument in the Nigerian oil sector, reflects the government’s earnings from the profitability of oil companies operating within the country.
This diverse revenue composition, experts in the oil and gas sectors say, underscores the multifaceted nature of Nigeria’s oil income, extending beyond crude oil sales. It also highlights the government’s reliance on various channels, including royalties, taxes, and fees, to maximise its earnings from the nation’s abundant natural resources.
The Nigerian oil sector, a critical pillar of the nation’s economy, they noted, has been facing a myriad of challenges. This has prompted significant actions and discussions at various government and international levels.
The gravity dire situation has since prompted the Speaker of the House of Representatives Tajudeen Abbas to initiate a Special Ad Hoc Committee on oil theft. The committee is tasked with probing the alarming increase in pipeline vandalism, illegal oil bunkering, and theft. Abbas highlighted a staggering loss for Nigeria: over 300,000 barrels of crude oil daily, amounting to N1.29 trillion annually, were lost due to these criminal activities.
The international dimension of Nigeria’s oil woes was brought to the fore by Ms. Emmanuelle Blatmann, the outgoing French Ambassador to Nigeria.
She observed that the intensifying Russia-Ukraine conflict is pushing European countries to seek alternative oil sources, but they are turning away from Nigeria partly due to the country’s struggles with fulfilling oil contracts.
Reflecting on these challenges, experts regrettably observe that the Federal Government has consistently fallen short of its revenue targets from the oil sector in recent years. In 2022, only 35.4% of the targeted oil revenue was realised, a stark shortfall from the planned N2.19 trillion, with just N776.35 billion being generated. The trend continued into 2023, with only about 79.3% of the target met between January and September.