Nigeria earns N1.53trn from oil, gas in three months

Michael Eboh

Dublin Ireland — Nigeria earned N1.531 trillion from oil and gas in the first quarter of 2024, rising by 39.56 per cent compared with oil and gas earnings of N1.097 trillion recorded in the fourth quarter of 2023, according to data by the Central Bank of Nigeria (CBN).

The CBN in its Economic Report for the First Quarter of 2024, also stated that the amount earned from the petroleum sector was 14.17 per cent higher compared with the N1.341 trillion oil earnings recorded in the first quarter of 2023.

The banking sector regulator also reported that oil earnings accounted for 31.4 per cent of total federation revenue, which stood at N4.877 trillion, while non-oil revenue, at N3.346 trillion, accounted for 68.6 per cent of total federation earnings.

Giving a breakdown of oil revenue, the CBN stated that the country earned N182.65 billion from crude oil and gas exports in the first quarter of 2024, 818.76 per cent higher than the N19.88 billion recorded in the fourth quarter of 2023, while nothing was earned from crude oil and gas export in the first quarter of 2023.

Furthermore, the lender of last resort disclosed that the country earned N366.93 billion from petroleum profit tax (PPT) in the quarter under review, an increase from the N136.67 billion recorded in the fourth quarter of 2023 and lower than the N791.59 billion recorded in the first quarter of 2023.

Earnings from royalties, domestic crude oil and gas sales, and others, according to the CBN, stood at N592.68 billion, zero and N388.65 billion respectively, in the first quarter of 2024, compared with NN489.89 billion, N56.86 billion and N394.90 billion respectively, recorded in the fourth quarter of 2023, and N533.11 billion, zero and N16.42 billion respectively, recorded in the first quarter of 2023.

In its analysis of oil output in the period under review, the CBN disclosed domestic crude oil production rose marginally (quarter-on-quarter) due to enhanced security measures in the oil-producing areas.

Specifically, it stated that Nigeria’s average crude oil production rose by 1.53 per cent to 1.33 million barrels per day (MBPD) in the first quarter of 2024, compared with 1.31 MBPD in the preceding quarter.

According to the bank, crude oil production increased in the Forcados and Bonny, Qua Iboe, Escravos and Brass streams following enhanced security measures in the Niger-Delta region.

It added that the production level in first quarter 2024 was, however, 248,000 barrels per day (BPD) lower than the OPEC quota of 1.58 mbpd.

Also, in its analysis of energy sector activities, the CBN said: “Energy sector output weakened due to decreased water supply to hydro substations, reduced gas supply, and vandalism of some electricity transmission and distribution infrastructure.

“Analysis of the index of electricity production (IEP) indicated that electricity production contracted by 46.04 per cent (quarter-on-quarter) in first quarter 2024, as against an increase of 31.47 per cent in fourth quarter 2023. On a y-o-y basis, IEP increased marginally by 1.22 per cent in the review period, compared with 6.47 per cent in fourth quarter 2023.”