The Federal Government’s earnings from crude oil and gas exports rose by 60.42 percent to $40.86 billion (about N18.18 trillion) in the first when compared with the $25.47 billion it earned in the corresponding period of 2021.
The CBN’s economic reports for the period under review indicated that crude oil and gas export receipts account for over 80 percent of Nigeria’s total export.
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Specifically, CBN data showed that in H1’21, the Federal Government raked in $ 17.70 billion from crude oil and gas exports against the $30.89 billion it earned in the first six months of this year.
The data also shows that the government earned a total of $9.97 billion from crude oil and gas exports in July and August this year compared with $7.77 billion in the corresponding period of last year.
However, the latest data released by the regulator indicates that the country’s earnings from crude oil and gas exports have been on a downward trend in recent months.
For instance, in its economic report for August 2022, the CBN stated: “Uncertainties about OPEC+ crude oil output decisions have moderated crude oil prices in the international market, thereby, affecting Nigeria’s crude oil export receipts.
“Provisional data shows that lower crude oil and gas export receipt of $4.58 billion was recorded in August 2022, compared with $5.39 billion in July 2022. “A breakdown by the main components reveals that crude oil export receipts declined by 18.0 percent to $3.89 billion, relative to S$4.74 billion in the preceding month.
“Recent crude oil price trends and domestic production challenges were attributed to the decline in crude oil export receipt. In contrast, gas export receipts increased by 7.0 percent to $0.70 billion, compared with $0.65 billion in the preceding month. In terms of share, crude oil and gas exports accounted for 88.1 percent of total exports, with oil constituting 74.7 percent and gas export accounting for 13.4 percent.”
Similarly, in its July 2022 economic report, the apex bank said: “Concerns over the prospects of global recession and the lockdown in major cities in China, dampened oil demand, and resulted in the decline in crude oil prices. “The lower price and the decline in domestic crude oil output weighed on export receipts. Consequently, lower crude oil and gas export receipts of $5.39 billion were recorded, compared with $5.52 billion in June.
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“A breakdown shows that crude oil export fell by 0.8 percent to $4.74 billion from $4.78 billion in the preceding month. The decline was caused by a decrease in both the price and output of Nigeria’s reference crude.
“The price of Bonny Light fell by 7.4 percent to an average of $120.54 pb, compared to $130.10 PB in June, while production fell by 5.8 percent to 1.13mbpd from 1.20mbpd in June. Gas export receipts also declined by 12.3 percent to $0.65 billion, compared with $0.74 billion in the preceding month. Crude oil and gas exports accounted for 89.6 percent of total exports (oil, 78.8 percent, and gas, 10.8 percent).”
