Nigeria’s crude oil revenue plunged by 74.89 per cent in July to a record low of $55.29m, according to the Nigerian National Petroleum Corporation NNPC.
The NNPC’s latest data on the Federal Government’s current export lifting showed that its crude oil sales proceeds stood at $219.58m in June, up from $120.50m in May.
Following the collapse in global crude oil prices and demand, Nigeria’s crude oil revenue tumbled from $336.65m in January to $281.14m in February, $184.59m in March and $148.86m in April.
The international oil benchmark, Brent crude, had slumped to as low as $15.98 per barrel in April from $70 per barrel in January.
But oil prices have risen in recent months on the back of the production cuts by the Organisation of the Petroleum Exporting Countries and its allies as well as the gradual reopening of many economies.
Brent, against which Nigeria’s oil is priced, stood at $43.15 per barrel as of 7:30 pm Nigerian time on Sunday.
Oil and gas accounts for about 50 per cent of the Nigerian government revenues and over 90 per cent of export earnings, although it represents only about 10 per cent of the country’s GDP.
“A total export sale of $84.63m was recorded in July 2020, decreasing by 66.95 per cent compared to last month. Crude oil export sales contributed $55.29m (65.34 per cent) of the dollar transactions compared with $219.58m contribution in the previous month,” the NNPC said in its latest monthly report.
The corporation said gas export sales amounted to $29.33m in July.
“The July 2019 to July 2020 crude oil and gas transactions indicated that crude oil and gas worth $3.91bn was exported,” it added.
According to the report, the federation crude oil and gas lifting are broadly classified into equity export and domestic, and are lifted and marketed by the NNPC while the proceeds remitted into the Federation Account.
It said, “Equity export receipts, after adjusting for joint venture cash calls, are paid directly into Federation Account domiciled in the Central Bank of Nigeria.
“Domestic crude oil of 445,000bpd is allocated for refining to meet domestic products supply. Payments are effected to Federation Account by NNPC after adjusting crude and product losses and pipeline repairs and management cost incurred during the period.”
The NNPC also lifts crude oil and gas on behalf of the Department of Petroleum Resources and the Federal Inland Revenue Service and the proceeds are remitted into Federation Account, according to the report.
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