Oil revenue accounted for 86.67 per cent of gross federally-collected revenue from January to June 2013, as the Federal Government earned a total of N3.809 trillion from oil within the period.
The amount represents 76.3 per cent of the 2013 Federal Government’s budget estimate of N4.99 trillion approved by the National Assembly and signed into law by the President.
The amount is also 33.59 per cent of the N11.34 trillion projected gross federally-collectible revenue for the 2013 fiscal year.
According to data obtained from the Central Bank of Nigeria, CBN, and the Federation Accounts Allocation Committee, FAAC, gross federally-collected revenue for the six months stands at N4.935 trillion, broken down into oil revenue — N3.809 trillion and Non-oil revenue — N1.13 trillion.
At N3.81 trillion, the amount earned from oil for the first half of the year dropped by 12.6 per cent compared to the N4.36 trillion recorded in the corresponding period of 2012.
Further breakdown of the 2013 earnings month on month shows:
• January – at N599 billion;
• February — N655.2 billion;
• March – N595.3 billion;
• April – N621 billion;
• May – N648.6 billion:
• June – N690.42 billion.
In view of the above,Analysts at Pearl Mutual Consulting Limited, called on the Federal Government to take urgent steps to diversify the economy away from oil.
The analysts, Hope Isangiedok and Olufunmi Adepoju, in their Second Quarter Economic Review, said: “Our major concern for the economy remains its mono-product nature, as crude oil remains the major source of revenue for the central government and majority of the states.
“Although crude oil prices remain healthy at circa $110 per barrel, it is unhealthy for growth to have an undiversified income base. Therefore, we stress the need for diversification of the nation’s income streams on the heels of new oil discoveries and sustained economic turmoil in Europe.”
Also, analysts at Financial Derivatives Company Limited, in their projection for the second half of 2013, said a sharp drop in oil prices and declining oil revenue among other factors in the months ahead will pose a serious risk to Nigeria’s macroeconomic stability.
They noted that the Nigerian oil sector is recording a slowdown in growth, with a growth rate of 0.54 per cent in the first half of 2013 compared to 0.91 per cent in 2012, which they attributed to output constraints and new investments.
They also projected a further decline in Nigeria’s domestic oil output to1.7 million barrels per day, due to increase in theft, vandalism and force majeure as well as OPEC reduction and strict enforcement of quota among others.
The CBN 2013 First Quarter Economic Report, showed the country earned N3.405 trillion ($21.28 billion) from crude oil production, and N2.657 trillion ($16.609 billion) from its export.
Specifically, the report estimated Nigeria’s crude oil production, including condensates and natural gas liquids, at an average of 2.05 million barrels per day (mbd) or 184.50mbd for Q1, while exports stood at 1.60 mbd or 144.0 million barrels for the quarter. Deliveries to the refineries for domestic consumption were 0.45 mbd or 40.50 million barrels.
In April 2013, the country earned N999.31 billion ($6.246 billion) from crude production, and N771.04 billion ($4.819 billion) from crude export. Nigeria’s crude oil production, including condensates and natural gas liquids, was estimated at an average of 1.97 (mbd) or 59.10 million barrels.
Crude oil export was estimated at 1.52 mbd or 45.60 million barrels. This represented a decrease of 1.9 per cent below the 1.55 mbd or 46.50 million barrels recorded in the preceding month, the CBN said.
In May, Nigeria’s crude oil production, including condensates and natural gas liquids, was estimated at an average of 1.94 mbd) or 60.14 million barrels.
This, according to the CBN, was 0.03 mbd or 1.5 per cent below the average of 1.97 mbd or 59.10 million barrels produced in the preceding month.