Nigeria generated N799.10billion from oil sector in the first quarter of 2022, which is indicative of a 28.3% decline from N1.11 trillion in the fourth quarter of 2021.
This was disclosed in the Central Bank’s latest economic and statistical report for the first quarter of 2022.
Nigeria’s crude oil and gas earnings in the first quarter of 2022 was also 17.1% lower than the N956bn revenue recorded in the same period in 2021. In the first quarter of 2022, oil revenue contributed 38% of the nation’s gross revenue, which was N2 trillion during the time under review, while non-oil revenue, at N1.1 trillion, accounted for 62% of total earnings.
What the CBN is saying
According to the report, “The observed drop in federation receipts was triggered by the decline in all components of oil revenue (crude oil and gas exports, petroleum profit tax and royalties, domestic crude oil and gas sales, among others). At N799.10 billion, oil receipts was 28.3% below earnings in the last quarter and 66.4% under projected earnings. In contrast, non-oil receipts at N1,731.39 billion, outperformed collection in the preceding quarter, but was 22.1% below target.”
The apex banks stated that the strengthening of the non-oil revenue through expanding the tax net and addressing revenue leaks improved Nigeria’s revenue challenges.
The report said, “The uptick in earnings, relative to 2021Q4, was attributed, largely, to a significant increase in collections from Value-Added Tax and Federal Government Independent Revenue. Improvement in these revenue components underscored the intensification of non-oil revenue drive through broadening the tax net and plugging of revenue leakages, particularly, in Government-Owned Enterprises (GOEs)”.
- Based on the report in January 2022, Nigeria earned N330billion. The country raked in N199billion and N261billion in February and March 2022, respectively.
- A further breakdown of the earnings showed that in the first quarter of 2022, earnings from crude oil sales stood at N153billion, compared to N234billion and N412billion recorded in the fourth and first quarters of 2021, respectively.
- The CBN also noted that the country did not gain any revenue from gas sales in the first quarter of 2022, as it did in the previous quarter, but revenues from oil and gas royalties, rent, and gas flare fines brought in N343.881billion, N2.382billion, and N19.323billion respectively.
- It further stated that miscellaneous, pipeline fees, and other oil and gas revenue totalled N4billion while Petroleum Profit Tax and gas tax brought in N267 billion for the country.