Nigerian National Petroleum Corporation revealed that Revenue from Crude Oil Sales nosedived by 74.89 per cent in July to a record low of $55.29m.
The latest data from the Corporation on the Federal Government’s export lifting showed that its crude oil sales proceeds stood at $219.58m in June 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 Federal Government saw its crude oil sales revenue plunge by 74.89 per cent in July to a record low of $55.29m, according to the Nigerian National Petroleum Corporation.
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 7:30pm 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.
In its latest monthly report, the NNPC stated that 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. Gas export sales amounted to $29.33m in July according to the corporation.
“The July 2019 to July 2020 crude oil and gas transactions indicated that crude oil and gas worth $3.91bn was exported,” it added.
“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.”