Would you like to receive notifications on latest updates of the following headlines?

CBN blames old pipelines for oil revenue drop

POSTED ON December 27, 2024 •   Business      BY Abiodun Saheed Omodara
CBN Building

The Central Bank of Nigeria has attributed the significant decline in oil revenue for the third quarter of 2024 to ageing pipeline infrastructure and operational inefficiencies.

The apex bank’s in it latest economic report for the third quarter of 2024, oil revenue fell by 24.72 per cent to N1.30tn compared to the second quarter of 2024.

This drop was largely due to lower receipts from petroleum profit tax and royalties.

Also, the revenue figure fell short of the quarterly target by 75.39 per cent, primarily due to frequent shut-ins caused by deteriorating pipelines and installations.

The report read, “Oil revenue, however, fell by 24.72 per cent to N1.30tn, relative to the level in Q2 2024 on account of lower receipts from petroleum profit tax and royalties.

“It was also 75.39 per cent short of the quarterly target due to shut-ins, arising from ageing oil pipelines and installations.”

It also noted that despite a modest increase in crude oil production to 1.33 million barrels per day from 1.27 mbpd in the preceding quarter, challenges including theft, vandalism, and infrastructure deficits severely hampered Nigeria’s oil revenue performance.

The ageing infrastructure not only reduced efficiency but also undermined the country’s ability to meet its OPEC production quota.

The report noted that global factors further compounded the situation, as the average spot price of Nigeria’s Bonny Light crude fell by 5.45 per cent to $82.23 per barrel during the quarter, reflecting subdued demand in the global market.

Similar declines were observed in other crude benchmarks, including Brent and the OPEC Reference Basket.

While the oil sector struggled, the Nigerian economy recorded growth of 3.46 per cent in Q3 2024, up from 3.19 per cent in the second quarter, driven largely by the non-oil sector, which contributed 3.18 percentage points to total GDP growth.

The oil sector’s growth slowed to 5.17 per cent year-on-year, compared to 10.15 per cent in the previous quarter, as operational inefficiencies and declining crude oil prices took a toll.

The fiscal implications were significant, with federally collected revenue falling 23.71 per cent short of the budget benchmark, despite a 7.48 per cent quarter-on-quarter increase.

The fiscal deficit, although narrowing by 22.51 per cent compared to the previous quarter, widened by 43.88 per cent relative to the quarterly target, reflecting ongoing fiscal pressures.

The report concluded that Nigeria’s goal of achieving an oil production target of 2mbpd by the end of 2024 remains under threat due to these challenges.

 

READ ALSO
NBS Reports April 2025 Inflation Rate Falls to 23.71%, Highlighting Food Safety Risks
BY Abiodun Saheed Omodara May 15, 2025 0

The inflation rate for April 2025 dropped to 23.71 percent, down from 24.23 percent in March 2025, m...

READ ALSO
Nasarawa Assembly Enacts Mining Bill to Ensure Compliance and Community Welfare
BY Abiodun Saheed Omodara May 14, 2025 0

NASARAWA, Nigeria - The Nasarawa House of Assembly On Tuesday approved a mining bill aimed at regula...

READ ALSO
CBN Launched BVN Platform for Nigerians Living Abroad
BY Abiodun Saheed Omodara May 14, 2025 0

The Central Bank of Nigeria (CBN), in partnership with the Nigeria Inter-Bank Settlement System (NIB...

READ ALSO
Tinubu Calls for Unified Tax System to Enhance Revenue Generation and Equity
BY Abiodun Saheed Omodara May 13, 2025 0

ABUJA, Nigeria - President Bola Tinubu has reiterated his commitment to undertaking bold and compreh...

READ ALSO
World Bank: Tinubu’s Reforms Bringing Stability to Nigeria’s Economy
BY Abiodun Saheed Omodara May 13, 2025 0

ABUJA, Nigeria - The World Bank expressed approval of the federal government on Monday, noting that...

READ ALSO
SERAP Requests CBN to Reveal Local Council Allocations Before 2027 Elections
BY Abiodun Saheed Omodara May 12, 2025 0

The Socio-Economic Rights and Accountability Project (SERAP) has requested that the Governor of the...

READ ALSO
Dangote Rejects Claims of Inadequate Fuel Supply Amidst Marketers' Accusations
BY Abiodun Saheed Omodara May 12, 2025 0

The Dangote Petroleum Refinery has dismissed accusations from oil marketers claiming that the facili...

READ ALSO
Nigeria's Public Debt Hits N144.67 Trillion as Government Borrows Heavily
BY Abiodun Saheed Omodara May 12, 2025 0

Nigeria's overall public debt increased by N57.3 trillion in the first 18 months of the current admi...

OUR CHANNELS:

FOX59: Woman Fatally Shot Outside Event Center on Indianapolis East Side
BY ROCKETPARROT.com staff May 15, 2025 0

INDIANAPOLIS — A woman was shot and killed Wednesday night outside an event center on the east...


DSS vs. Pat Utomi: Legal Battle Over Shadow Government Tests Nigeria’s Democratic Boundaries
BY ROCKETPARROT.com staff May 15, 2025 0

The Department of State Services (DSS) has filed a lawsuit against Prof. Pat Utomi, a renowned eco...


Shadow Government or Civic Protest? Experts Debate What Pat Utomi's Move Really Means
BY ROCKETPARROT.com staff May 15, 2025 0

ABUJA – As the Department of State Services (DSS) seeks to shut down Prof. Pat Utomi’s s...


Will Pope Leo XIV Lose His American Citizenship? A Legal and Diplomatic Puzzle Unfolds
BY Abiodun Saheed Omodara May 15, 2025 0

VATICAN CITY – When Cardinal Robert Francis Prevost was elected Pope Leo XIV on May 8, he beca...


30% of Lagos State Employees on Study Leave Abroad Fail to Return - Commissioner
BY Abiodun Saheed Omodara May 15, 2025 0

LAGOS, Nigeria - The Lagos State government has disclosed that 30% of its employees who took study l...


NCDC Confirms 34 Deaths in Taraba State, Leading the Fight Against Lassa Fever in 2025
BY Abiodun Saheed Omodara May 14, 2025 0

TARABA, Nigeria - The Nigeria Centre for Disease Control and Prevention (NCDC) has reported that Tar...


FG Urges Tertiary Institutions to Allow Exam Participation for Student Loan Applicants
BY Abiodun Saheed Omodara May 15, 2025 0

The Federal Government has called on tertiary institutions to allow students who have applied for th...


FG Urges Compliance with New Driver's Licence Pricing Effective June 8
BY Abiodun Saheed Omodara May 14, 2025 0

Nigerians will see an increase in the cost of their driver’s licences as the Joint Tax Board (...


Ogun State Television Journalist Bukola Agbakaizu Passes Away
BY Abiodun Saheed Omodara May 14, 2025 0

A female journalist from Ogun State Television (OGTV) in Abeokuta, Bukola Agbakaizu, passed away on...


Tackling Nigeria's Food System Crisis: Opportunities amidst Challenges
BY Abiodun Saheed Omodara May 14, 2025 0

ABUJA, Nigeria - The Country Director of ActionAid Nigeria (AAN), Andrew Mamedu, has stated that Nig...


More Articles

Load more...

Menu