New Telegraph

Oil: Documents reveal trillion naira earnings in 64 years

Nigeria has earned about N132.612 trillion from petroleum revenue from 1958 to June, 2022. This is according to documents from the Nigeria Extractive Industry Transparency Initiative, NEITI, the Petroleum Inspectorate, Nigerian National Petroleum Company Limited (NNPCL), Central Bank of Nigeria (CBN), and the Nigeria Bureau of Statistics.

The country earned N11 trillion in the first six months of 2022, according to the latest data from the National Bureau of Statistics’ Foreign Trade Statistics for the second quarter of 2022. A breakdown of crude oil exports in the first half of 2022 revealed that in the first quarter of 2022, Nigeria exported crude oil valued at N5.6 trillion. The earnings increased to N5.9 trillion in the second quarter of the year.

In comparison, in the first quarter of 2021, the NBS said Nigeria earned N2 trillion from crude oil exports and N4 trillion in the second quarter. Furthermore, in the third and fourth quarters of 2021, Nigeria recorded crude oil exports of N4 trillion and N4.3 trillion respectively.

A document on Crude Oil and Condensate Production for 2021, obtained from the Nigerian Upstream Petroleum Regulatory Commission showed that the Federal Government earned about N12.4 trillion from crude oil alone sales during the review period.

The report stated that oil production during the 11-month period kept fluctuating, hitting a high of 44.287 million barrels in March, while the least production volume of 37.405 million barrels was recorded in September. It also explained that production volumes of January was 42.195 million barrels; February, 39.869 million barrels; April, 41.17 million barrels; May, 41.679 million barrels; and June, 39.4 million barrels.

Nigeria’s crude oil production volumes for July, 41.026 million barrels; August, 38.406 million barrels; October, 8.06 million barrels and November, 38.247 million barrels.

According to Statistica, a global statistics firm, the average monthly price of a barrel of Brent, the crude against which Nigeria’s oil is priced, showed that the cost of the commodity in January, was $54.77; February, $62.28; March, $65.41 and April, $64.81. In May, June, July and August 2021, the average prices were $68.53, $73.16, $75.17 and $70.71 per barrel respectively. The average monthly prices of Brent per barrel for the months of September, October and November, were put at $74.49, $83.54 and $81.54 respectively.

The country’s official exchange rate during the period was around N400 to the dollar. It stayed above N400/$ from May down to November 2021, after hovering around N379/$ in the earlier months.

Using an average of N400/$, the various average monthly costs of Brent and the monthly crude oil production figures as stated above, Nigeria earned about N924.41 billion from oil in January, N993.22 billion in February and N1.16 trillion in March 2021.

In addition, Nigeria’s crude oil earnings in April, May, June and July were about N1.07 trillion, N1.14 trillion, N1.15 trillion and N1.23 trillion respectively. Also, the Federal Government earned about N1.09 trillion in August; N1.11 trillion, in September; N1.27 trillion in October; and N1.25 trillion in November. Total Nigeria’s earnings for the 11-month period in 2021 from the sale of crude oil is about N12.4 trillion.

NEITI in its oil and gas 2020 report stated that revenue from the oil and gas sector amounted to $394.02 billion from 2011 to 2020. It explained that the total revenue received from the sector was $20.43 billion in 2020 — the second-lowest figure in the 10-year period. According to the report, the low revenue for 2020 to the global drop in oil prices due to COVID-19. The report detailed that Shell Nige-

ria Exploration and Production Company SNEPCO recorded the highest deferment of 17.84 million barrels of oil, Chevron Nigeria Limited (CNL) followed closely with 12.18 million barrels, and Nigerian Agip Oil Company (NAOC) recorded a crude oil deferment of 11.17 million barrels of oil. It added that Shell Petroleum Development Company (SPDC) deferred the production of 11 million barrels of oil, while the Nigerian Petroleum Development Company/ Seplat joint venture (NPDC SEPLAT) deferred 7.4 million barrels (mmbbls) of oil.

According to it, NewCross E&P deferred 4.15 mmbbls, Addax Petroleum Exploration Nigeria Ltd (APENL) deferred 2.26 mmbbls, Continental deferred 2.16 mmbbls, while Seplat failed to produce 1.33 mmbbls.

It futher revealed that the Nigerian Petroleum Development Company Ltd /First Hydrocarbon Nigeria deferred 1.2mmbbls in 2020, while Energia could not produce 965,893 barrels in the same year.

Aiteo recorded a delay of 469,716 barrels of oil production, Oriental could not produce 264,542 barrels of oil, and Addax Petroleum Development Nigeria Limited (ADPNL) deferred 143,752 barrels of oil.

Consolidated Oil Limited, Watersmith Petroman Oil Limited, and Chorus Energy Limited deferred 44,210 barrels of oil, 24,342 barrels of oil, and 5,115 barrels of crude oil, respectively. Giving details according to regimes and administrations, data obtained from CBN, showed that the administration of President Muhammadu Buhari earned N16.647 trillion from the oil and gas industry in its first tenure, from May 2015 to April 2019.

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