…As low prices and output persist
Low oil prices and output are believed to have taken serious toll on the Nigerian federal government revenue, hence the country could only collect about half of its budgeted revenues in the first five months of this year.
According to Bloomberg, total earnings by the federal government from January to May were N1.48 trillion ($3.8 billion), which was 56% of targeted revenue for the period, quoting the Finance Minister Zainab Ahmed, during a presentation to lawmakers last Thursday. Also, earnings from crude sales accounted for about half of the total revenues with non-oil income contributing the balance.
“Although Nigeria’s total production capacity is 2.5 million barrels per day, current crude production is about 1.4 million barrels per day – in compliance with the Organization of the Petroleum Exporting Countries’ (OPEC) production quota – and an additional 300,000 barrels per day of condensates, totaling about 1.7 million barells per day,” Ahmed had said.
Oil production will average 1.86 million barrels a day in 2021, rise to 2.09 million barrels a day in 2022, and 2.38 million barrels in 2023. The report said on the expenditure side, N1.25 trillion was spent on debt service and N1.32 trillion for personnel cost, including pensions, Ahmed said.
Chibisi Ohakah, Abuja