Non-oil revenue exceeds earnings from crude in April, 2015

By Michael Eboh

NIGERIA’S earnings from the non-oil sector, for the first time in a long while, exceeded its oil revenue, accounting for 61.1 per cent of total federally-collected revenue in April 2015 with N448.83 billion. The country’s earning from the petroleum sector dropped to N286.24 billion, indicating that the low price of crude oil in the international market has continued to take its toll on the nation’s economy.

Data obtained from the Central Bank of Nigeria’s, CBN Economic Report for April 2015, showed that earnings from the petroleum sector dipped by N78.4 billion from N364.6 billion recorded in March, representing 38.9 per cent of the total revenue. The CBN attributed the improvement recorded in non-oil revenue to increased receipts from Value Added Tax, VAT, Customs & Excise Duties and other unlisted sources.

It said: “At N448.83 billion or 61.1 per cent of the total revenue, gross non-oil receipts was above the monthly budget estimate and the level in the preceding month by 23.9 and 154.1 per cent, respectively. The increase in non-oil revenue relative to the monthly budget estimate reflected largely, the increased receipts from the FGN Independent Revenue.

“At N735.07 billion, estimated federally-collected revenue in April 2015, was lower than the monthly budget estimate by 9.8 per cent. It was, however, higher than the receipt in the preceding month by 35.8 per cent. The decline in estimated federally-collected revenue (gross) relative to the monthly budget estimate was attributable, largely, to the shortfall in receipts from oil revenue during the review month.”

To this end, the CBN estimated federally-collected revenue at N735.07 billion, appreciating by 35.8 per cent from the N541.2 billion recorded in March. Given the significant decline in oil receipts, non-oil receipts appreciated by 154.4 per cent. The CBN attributed the fall in oil receipts compared to the preceding month’s level to the decline in revenue from crude oil and gas exports, occasioned by the drop in the prices of crude oil in the international market.

Specifically, the CBN noted that crude oil production, including condensates and natural gas liquids in April was estimated at 1.91 million barrels per day, mbd or 57.30 million barrels for the month, while crude oil export was estimated at 1.46 mbd or 43.80 million barrels during the month.

“The average price of Nigeria’s reference crude, the Bonny Light (370 API), was estimated at $59.55 per barrel, indicating an increase of 3.7 per cent above the level in the preceding month,” the CBN said.

Breaking the gross oil revenue further, the CBN said Nigeria earned N80.9 billion from crude oil and gas sales in April, compared to N106.7 billion recorded in March, and realised N87.7 billion from domestic crude oil/gas sales, compared to N77.2 billion a month earlier.

Also, Petroleum Profit Tax, PPT/Royalties dipped by 39.1 per cent to N104.4 billion from N171.4 billion recorded in March, while earnings from other unlisted oil sources rose to N13.2 billion from N9.3 billion in the same period.

- Culled from: http://www.vanguardngr.com