Nigeria’s oil revenue rose by 129 percent to N9.4 trillion in 2018 as Oil price hits $63.02

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A worker walks in between oil barrels at Pertamina's storage depot in Jakarta in this January 26, 2011 file photo. To match Special Report CHINA-CORRUPTION/INDONESIA REUTERS/Supri/Files (INDONESIA - Tags: ENERGY BUSINESS)

Nigeria’s oil revenue shop up by 129 percent to N9.4 trillion in 2018 buoyed by increased crude oil price.

Our analysis revealed that average price of Nigeria’s crude oil; Bonny Light rose by 26 percent to $70.66 per barrel in 2018 from $52.51 per barrel in 2017.

Indication that this trend will persist this year emerged yesterday when the price of crude oil, rose to $63.02 per barrel from $60 per barrel, representing $3 above the nation’s budget benchmark of $60 per barrel.

According to the economic report for the fourth quarter of 2018 ( Q4’18) released by the Central Bank of Nigeria (CBN) yesterday, total oil revenue rose by 129 percent to N9.4 trillion in 2018 from N4.1 trillion in 2017.

Non oil revenue also rose by 21 percent to N3.9 trillion from N3.2 trillion in 2017.

Consequently oil revenue accounted for 71 percent of the total federally collected revenue which rose by 82 percent to N13.3 trillion in 2018 from N7.3 trillion in 2017.

However, total federally collected revenue fell by 4.8 percent to N2.4 trillion in Q4’18 due to decline in non oil revenue.

The report said: “At N2.41 trillion, federally-collected revenue in the fourth quarter of 2018, was lower than the proportionate quarterly budget estimate of N3.32 trillion billion by 27.4 per cent.

It also, fell below the receipts in the preceding quarter by 4.8 per cent.

“The decline in federally-collected revenue (gross) relative to the proportionate quarterly budget estimate was attributed to the shortfall in receipts from both oil and non-oil revenue components during the review period Gross oil receipt, at N1.46 trillion or 60.7 per cent of the total revenue, was below the proportionate quarterly budget estimate by 23.7 per cent, but higher than receipts in the third quarter of 2018 by 5.1 per cent.

Despite the increase in crude oil price, oil revenue declined relative to the proportionate budget owing to shortfalls in crude oil production and exports, arising from maintenance at various NNPC terminals.

“Non-oil revenue, at N946.90 billion or 67.6 per cent of the total, was below the proportionate quarterly budget estimate of N1.4 trillion and the level in the preceding quarter by 32.4 per cent and 17.0 per cent, respectively.

The lower non-oil revenue relative to the proportionate quarterly budget estimate was due to the shortfalls in receipts from Federal Government Independent Revenue and VAT in the review period”.

FG records N3.4 trillion deficits in 2018 Meanwhile the federal government recorded N3.4 trillion deficits in 2018, representing 59 percent when compared with the deficit of N2.14 trillion recorded in 2017.

The CBN Q4’18 economic report also revealed that deficit rose to N910 billion during the quarter, representing … percent from N855.09 percent recorded in Q3’18.

The CBN said: “Federal Government retained revenue for the fourth quarter of 2018 was estimated at N916.44 billion.

This was below the proportionate quarterly budget estimate and the receipts in the preceding quarter by 51.5 per cent and 11.5 per cent, respectively.

Of the total revenue, Federation Account accounted for 90.4 per cent, while VAT, Excess crude/PPT, Federal Government Independent Revenue, Excess Non-oil and Exchange Gain accounted for 4.3, 3.5, 1.4, 0.3 and 0.1 per cent, respectively

“The estimated Federal Government expenditure for the fourth quarter of 2018 stood at N1.83 trillion and was below the proportionate quarterly budget estimate of N2.38 trillion by 23.1 per cent and the level in the preceding quarter by 3.4 per cent.

A breakdown of the total expenditure showed that the recurrent component accounted for 87.8 per cent, while capital and statutory transfers accounted for 5.9 and 6.3 per cent, respectively.

A further breakdown of the recurrent expenditure showed that the non-debt component accounted for 53.8 per cent, while debt service payments was 46.2 per cent

Thus, the fiscal operations of the Federal Government resulted in an estimated deficit of N910.41 billion, compared with the proportionate quarterly budget deficit of N488.62 billion.”

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Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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