Nigeria’s Oil Revenue Records 0.64% Decline to N809 Billion in Third Quarter
In the third quarter of 2023, Nigeria’s oil earnings increased by 0.64% to N814.23 billion compared to N809.02 billion earned in the second quarter of 2023, according to data released by the Central Bank of Nigeria (CBN). However, the earnings from crude oil in Q3 2023 were 33.94% lower than the N1.233 trillion revenue from the oil and gas industry in the third quarter of 2022.
The breakdown of gross oil earnings in Q3 2023 revealed that crude oil and gas export revenue stood at N3.09 billion, compared to zero earnings from exports in Q2 2023 and Q3 2022. Domestic crude oil and gas sales generated N64.56 billion in the third quarter of 2023.
Revenue from Petroleum Profit Tax/Royalties declined by 34.17% to N513.05 billion in Q3 2023 compared to N779.41 billion in the previous quarter and decreased by 55.23% compared to N1.146 trillion in Q3 2022.
Other petroleum revenue rose significantly by 906.72%, reaching N298.09 billion in Q3 2023, compared to N29.61 billion in Q2 2023, and it was also 1,261% higher than the N21.91 billion earned from this item in Q3 2022. The CBN stated that other petroleum earnings include non-regular oil receipts, such as oil/gas dividends and profit, signature bonuses, and oil-related recoveries.
While federally collected revenue was 9.5% below the target, it improved by 50.1% relative to the level in the preceding quarter, mainly due to higher non-oil receipts, according to the CBN.
It said: “The improved performance reflected higher receipts from Company Income Tax (CIT), Customs & Excise Duties and Value-Added Tax (VAT), Production Sharing Contract (PSC), and the 2023 interim dividend declaration by the Nigerian National Petroleum Company Limited (NNPCL).
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“Non-oil revenue continued to dominate federation revenue, accounting for 83.0 percent, while oil revenue made up the balance of 17.0 percent.
“Driven by receipts from production sharing contract (PSC) and dividends from NNPCL, oil revenue, at N814.23 billion, rose by 0.6 percent above the level in the preceding quarter, but was below the target of N2,410.89 billion by 66.2 percent.”
