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Oil Export Inflow At ₦2.32trn, Declines by 36.7%

Total value of Nigeria’s oil exports stood at ₦2.315 trillion in the first half of 2016, H1’16.

Crude oil pipeline

According to the Foreign Trade Statistics of the National Bureau of Statistics, NBS, this figure represented a decline by ₦1.344 trillion or 36.73 percent compared to first half 2015 figure of ₦3.659 trillion. 

It also represented a drop of ₦835 billion or 26.51 percent when compared against the H2’15. 

Giving a breakdown of the crude oil export in H1’16 the NBS report noted that in the first quarter, Q1’16, the figure was ₦821.87 billion while Q2’16 figure rose to ₦1.5 trillion, due mainly to devaluation of the Naira.

Further analysis of total exports in the second quarter showed that petroleum products accounted for majority of Nigeria’s export, as mineral products accounted for ₦1.735 billion or 92.7 percent of the country’s total export value, while Liquefied Natural Gas, LNG, recorded ₦198 billion of the country’s total export value in the second quarter of 2016. 

According to the NBS report, India emerged the highest buyer of Nigeria’s crude oil in the second quarter of 2016, with ₦362.906 billion; while the United States followed with the purchase of ₦224.08 billion worth of Nigeria’s crude oil.

Spain, Netherlands and South Africa purchased Nigeria’s crude oil valued at ₦181.66 billion, ₦123.88 billion and ₦99.22 billion respectively.

Other destinations of Nigeria crude oil export include Canada, Indonesia, Germany, France and Italy, accounting for ₦85.81 billion, ₦83.66 billion, ₦24.62 billion, ₦56.75 billion and ₦41.05 billion respectively.

Oil earnings dip by ₦577bn 

Meanwhile, the Central Bank of Nigeria, CBN, stated that amount accruing to the federation account from oil sales as at end H1’16 stood at ₦1.203 trillion, indicating that about ₦1.112 trillion of the total value of oil exports must have accrued to Joint Venture partner oil companies and others.

The accruals to the federation account show a drop of ₦577 billion from ₦1.78 trillion recorded in H1’15.

In its analysis of Federally-collected revenue the CBN, in its Economic Report for Q2’16, stated that the country recorded oil revenues of ₦666.13 billion and ₦537.19 billion in Q1’16 and Q2’16 respectively.

This was in comparison to oil revenues of ₦949.45 billion and ₦830.81 billion recorded in Q3’15 and Q4’15 respectively.

Also, the report noted that at ₦1.203 trillion, Nigeria’s crude oil revenue in the H1’16 declined by 41.29 percent, representing a decline of ₦846 billion when compared with oil revenue of ₦2.049 trillion recorded in the corresponding period in 2015.

Specifically, in Q1’15 and Q2’15, Nigeria’s crude oil revenue stood at ₦1.211 trillion and ₦839.02 billion respectively.

The CBN blamed the decline in oil revenue on the continued fall in receipts from crude oil and gas exports arising from persistent low price of crude oil. 

The CBN also attributed the drop to incidences of shut-ins and shut-downs at some Nigerian National Petroleum Corporation, NNPC, terminals, owing to pipeline vandalism. 

As a result, the report noted that at ₦1.224 trillion, non-oil earnings accounted for 50.4 percent of gross federally-collected revenue of ₦2.428 trillion in the first half of 2016, while oil earnings accounted for 49.6 percent of total federally-collected revenue.

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