This release was disclosed in the Central Bank of Nigeria, CBN’s recent Economic and Statistical report for Q1, 2022.
Oil Revenue witnesses 28.3% drop with N799.10 billion generated in Q1
The Nigerian oil industry witnessed low sales in the first quarter, Q1 of 2022 with revenue dropping to N799.10 billion, a figure which indicates a 28.3% decline from N1.11 trillion earned during the same period in 2021.
This confirms earlier reports that about $1 billion in revenue was lost due to crude oil theft during the same period as seen in a July report from the Nigerian Upstream Petroleum Regulatory Commission.
The statistics released by the CBN also revealed that the crude oil and gas earnings during the same period dipped 17.1% lower than the N956 billion revenue recorded in the same period in 2021.
The report also revealed the Nation failed to gain any revenue from gas sales during the same period in review, as it did in the previous quarter.
There were, however, earned revenues from oil and gas royalties, rent, and gas flare fines to the tune of N343.881 billion, N2.382 billion, and N19.323 billion respectively.
Nigeria's total earnings during the time under review was boosted by oil revenue which contributed about 38% of the nation's gross revenue of N2 trillion at the time of the report.
Non-oil revenue on the other hand, contributed about N1.1 trillion, a figure which accounted for 62% of the total earnings.
While reports of oil theft and the failure to regulate activities in the downstream sector have been reported as reasons for the low revenue from oil sources, the NNPC however, noted that the low revenue generated in the industry was triggered by the combined decline in all components of oil revenue which include crude oil and gas exports, petroleum profit tax and royalties, domestic crude oil and gas sales, among others.
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