Saturday 2 July 2016

Nigeria Government Earns N724bn From Oil In Three Months




Figures in the fiscal account report of the Federal Government of Nigeria showed that the Government generated a sum of N724.63bn as oil revenue within the first three months of the year 2016.
According to the report prepared by the accountant general of the federation, the country earned a total of N252.10bn as crude oil revenue in January while February and March recorded N251.17bn and N221.35bn, respectively.
A breakdown of the N724.63bn showed that the government through the Nigerian National Petroleum Corporation generated N511.28bn from oil proceeds while the balance of N213.35bn came in from taxes paid by oil companies to the Federal Inland Revenue Service.
An analysis of the statistics showed that the N511.28bn oil revenue by the NNPC was generated as follows: crude oil sales (export and domestic), N402.18bn; gas sales, N6.36bn; oil and gas royalties, N100.69bn.

Others are rent, N158m; gas flared penalty, N374m; and other oil and gas revenues, N1.51bn.
Since the beginning of the year, the gross revenue paid into the federation account has been experiencing a huge decline owing to shut-down of production for repairs.
There had been, for instance, explosions at Escravos terminal and a force majeure was declared at Brass terminal in January and February as a result of attacks on oil facilities.
The 2016 budget, which was signed by President Muhammadu Buhari had projected a daily oil production output of 2.2 million barrels per day with a budgeted oil benchmark price of $38 per barrel.
Based on the revenue projections of the government in the 2016 fiscal period, oil-related revenues are expected to contribute N820bn.


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