NIGERIA’S crude oil earnings during the fourth quarter of 2014 declined from $9.95 billion (about N2.5 trillion) it recorded in the preceding quarter to $7.77 billion (N1.9 trillion), according to the latest report from the Central Bank of Nigeria (CBN).
Besides, total allocation to state governments (including the Federation Account, 13 per cent Derivation Fund and VAT) stood at N620.29 billion during the review quarter.
According to the report, the decline in the country’s crude oil earnings impacted negatively on aggregate foreign exchange flows, which fell by 18.3 per cent below the level in the preceding quarter.
Specifically, country received $36.15 billion in the quarter under review, which was attributed, largely, to the decline in receipts from crude oil sales and inflow through autonomous sources.
The apex bank put Nigeria’s crude oil production, including condensates and natural gas liquids, averaged 1.99 mbd or 183.08 million barrels (mb) in the review quarter, representing an increase of 0.01 mbd (0.5 per cent), compared with the 1.98 mbd or 182.16 million barrels produced 0in the preceding quarter.
Crude oil export was estimated at 1.54 mbd or (141.68 million barrels), representing an increase of 0.7 per cent, compared with 1.53 mbd or 140.76 million barrels (mb) recorded in the preceding quarter.
This development was attributed to improved surveillance around oil installations, which curtailed the incessant oil theft, illegal bunkering and production cuts experienced in the early part of the year.
Allocation of crude oil for domestic consumption was 0.45 mbd or 41.4 million barrels during the review period. It added that total allocation to state governments (including the Federation Account, 13 per cent Derivation Fund and VAT) stood at N620.29 billion during the review quarter. “This was lower than the level in the preceding quarter and the corresponding quarter of 2013 by 10.7 and 14.9 per cent, respectively. Further breakdown showed that receipts from the Federation Account were N527.71 billion (85.1 per cent), while VAT contributed N92.58 billion (14.9 per cent).
The share of Federation Account was 12.3 and 15.2 per cent lower than the level in the preceding quarter and the corresponding quarter of 2013, respectively. Receipts from the VAT Pool Account fell below the level in the preceding quarter and the proportionate quarterly budget estimate by 0.4 and 8.5 per cent, respectively.