Oil terminal shutdown: Nigeria loses N44.6bn in one month

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Nigeria lost N44.6bn as a result of the drop in oil revenue occasioned by the shut-ins and shutdowns of some terminals by the Nigerian National Petroleum Corporation in April 2019, latest data obtained from the Central Bank of Nigeria revealed.

The CBN said the country’s oil earnings fell from the N516.88bn recorded in March to N472.28bn in April, adding that this also affected the gross federally-collected revenue for the month.

Although oil receipts accounted for 59.4 per cent of total revenue which the country made in April this year, data from the bank showed that earnings from oil dropped by 8.6 per cent when compared to the previous month’s receipts.

Also, earnings from the sector were 26.2 per cent lower than the provisional monthly budget estimate, as the apex bank explained that the shutdown and shut-ins of terminals were due to leakages, technical issues and maintenance.

The bank stated, “Oil receipts, at N472.38bn or 59.4 per cent of total revenue, was below both the provisional monthly budget estimate and the preceding month’s receipt of N516.88bn by 26.2 per cent and 8.6 per cent, respectively.

“The fall in oil revenue relative to the provisional monthly budget estimate was attributed to the shut-ins and shut-downs at some NNPC terminals due to technical issues, leakages and maintenance.”

Similarly, the CBN noted that at N322.93bn or 40.6 per cent of total revenue, non-oil revenue was below the provisional monthly budget estimate of N466.91bn by 30.8 per cent, but exceeded the preceding month’s receipt of N251.01bn by 28.7 per cent.

It said the lower collection relative to the provisional monthly budget estimate was due to the shortfalls in corporate tax, value added tax, Federal Government independent revenue and education tax.

On operations of the Federation Account, the bank stated that at N795.31bn, the estimated federally-collected revenue (gross) in April 2019 fell below the provisional monthly budget estimates of N1.11tn by 28.2 per cent.

“However, it exceeded the receipt of N767.90bn in the preceding month by 3.6 per cent. The decrease, relative to the provisional monthly budget estimate, was attributed to a shortfall in both oil and non-oil revenue,” it added.

It further stated that of the total N616.21bn retained revenue in the Federation Account, the sums of N88.49bn, N67.82bn and N24.72bn were transferred to the VAT Pool Account, the Federal Government Independent revenue and ‘others’, respectively, leaving a balance of N435.18bn for distribution to the three tiers of government.

Of this amount, the Federal Government received N208.39bn, while the state and local governments got N105.70bn and N81.49bn, respectively.

The balance of N39.59bn was shared among the oil producing states as 13 per cent Derivation Fund.

Similarly, from the N88.49bn transferred to the VAT Pool Account, the Federal Government received N13.27bn, while the state and local governments received N44.25bn and N30.97bn, respectively.

“Also, the sum of N78.09bn was shared as excess oil revenue,” the CBN stated.

It explained that the federal, state and local governments received N35.79bn, N18.15bn and N13.99bn, respectively, while the 13 per cent Derivation Fund received N10.15bn.

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