Central Bank of Nigeria (CBN) has informed that Nigeria’s earnings from crude oil sales dropped to a four-month low. In the apex bank latest monthly economic report for January 2022, the CBN said noted that in spite higher oil prices in the global market, Nigeria’s earnings has remained low.
It indicated that the low earnings is attributable to Nigeria’s lingering inability to meet production quota, as well as oil theft, which crept into the sector large scale in the last five years.
According to the CBN document published in its website, in January Nigeria made N945billion, this is 7.8% less than the N1.024 trillion budgeted for the period.
A breakdown of the components of oil revenue showed that no revenue accrued from crude oil and gas exports in January, the second straight month the government has earned nothing from such a major income source.
The data shows that the Nigerian economy is more likely to suffer than gain as oil prices soar.
No money was recorded for oil and gas exports because the Nigerian National Petroleum Company (NNPC) has not remitted funds to the joint pool of the federation account in recent months, due to rising petrol subsidy claims, on the back of elevated crude oil prices as well as lower oil production.
Revenue from petroleum profit tax and royalties, which formed the bulk of oil revenue, declined by 31% to N247 billion compared with N360 billion the previous month and was also below the monthly target of N277 billion, the report said.
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