The Nigerian government has posted a deficit of N3.73 trillion in its crude oil revenue between January and December 2019. Central Bank of Nigeria (CBN) reported Economic Report for November 2019 that the country generated a gross sum of N5.040 trillion against its 11-month income target of N8.787 trillion.
By implication, the oil revenue performance of government was 43% less its projection for the period under review. Of the N5.040 total earnings, Petroleum Profit Tax and Royalties constituted N2.94 trillion while crude oil and gas exports accounted for N363.9 trillion.
The report puts the monthly income generation for January, February, March, April, May and June 2019 at N417.3 billion, N479.5 billion, N516.9 billion, N472.4 billion, N410.2 billion and N336.6 billion respectively. N387.7 billion was generated in July, N484.8 billion in August, N467.6 billion in September, N577.3 billion in October and N489.1 billion in November.
According to the CBN the shortfall in oil receipts stemmed from constraints posed by pipeline leakages and maintenance work, resulting in closure of NNPC terminals from time to time. The document says “the average spot price of Nigeria’s reference crude oil, the Bonny Light (37° API) at end-November2019, wasUS$66.11/b, compared with US$61.10/b recorded in October 2019.
“This represented an increase of 8.2per cent, relative to the level in the preceding month.” It links the increase in the price of crude to the potential cut in production by the OPEC+ as well as strict measures adopted by Nigeria and Iran in controlling export.