Nigeria’s distributable revenue rose by 3.4 percent in December

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ABUJA JANUARY 21, 2017 – Nigeria’s distributable revenues to the government rose in December by 3.4 percent to 400 billion naira ($1.31 billion) as the country collected more royalties from oil, the minister of finance said in a statement on Friday.

“Collection from royalties increased significantly,” Minister of Finance Kemi Adeosun said in the statement.

Average oil prices rose from $47.08 to $47.30 per barrel during December, but that was offset as total crude export volume dropped 1.39 million barrels, causing export sales to fall $65.4 million, she said.

Nigeria, which has Africa’s biggest economy, is an OPEC member that relies on crude oil sales for two-thirds of government revenue. As a result, it has been hit hard by the fall in global crude prices since mid-2014.

Militants have carried out attacks on oil and gas facilities in the southern Niger Delta energy hub for a year, cutting oil production – which stood at 2.1 million barrels per day at the start of 2016 – by more than a third earlier this year.

The frequency of attacks has slowed in recent months amid talks between the government and Delta community leaders to address the grievances of militants who want the oil hub to receive a greater share of the country’s energy wealth.

Repairs on damaged facilities are underway, while force majeure remains in place at Forcados, Qua Iboe and Brass oil terminals.

“Federation revenue was negatively affected by several shut-ins and shut-downs of pipelines for repairs and maintenance due to leakage and sabotage,” said Adeosun in Friday’s statement.

The total revenue distributable – including 79.273 billion naira of value-added tax – is 400 billion naira, she said.

 

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