Nigeria’s Oil Earning Dips 29% To N789bn in First Quarter

Nigeria recorded significant decline in oil earnings in the first quarter of 2022, as petroleum revenue in the first three months of the year dipped by 29.15 per cent to N789.985 billion, compared with N1.115 trillion recorded in the previous quarter, October to December 2021, according to data obtained from the Central Bank of Nigeria.

Nigeria’s first quarter crude oil and gas earnings in the first quarter of 2022, was also 17.38 per cent lower than the N956.114 billion revenue recorded in the same period in 2021.

The apex bank further stated that oil revenue for the first quarter of 2022 accounted for 37.89 per cent of the country’s gross revenue, which stood at N2.085 trillion in the period under review, while non-oil revenue, at N1.295 trillion, accounted for 62.11 per cent of total earnings.

In comparison, in the fourth quarter of 2021, oil revenue accounted for 46.11 per cent of gross revenue; while in the first quarter of 2021, it accounted for 47.52 per cent of gross revenue.

The CBN, in its latest economic and statistical report for the first quarter of 2022, stated that in January 2022, Nigeria earned N329.984 billion, while in February and March 2022, the country earned N199.082 billion and N260.919 billion, respectively.

Giving a breakdown of the oil and gas earnings for the first quarter of 2022, the bank further stated that earnings from crude oil sales stood at N153.59 billion, compared to N234.053 billion and N412.128 billion 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 penalty 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 N3.749 billion; while Petroleum Profit Tax (PPT) and gas tax fetched the country N267.06 billion in revenue.

Comparatively, in the first quarter of 2021, earnings from the oil and gas sector stood N315.24 billion, N296.94 billion and N343.94 billion for January, February and March, respectively.

The CBN reported that after various deductions, “net oil revenue before 13% derivation”

stood at N486.529 billion, while net oil revenue after 13% derivation stood at N375.097 billion.

This means that N111.42 billion was shared to oil-producing states, under the 13 per cent derivation principle.