The Federal Government saw its crude oil sales revenue plunge by 74.89 per cent in July to a record low of $55.29million, according to the Nigerian National Petroleum Corporation (NNPC).
The NNPC’s latest data on the Federal Government’s export lifting showed that its crude oil sales proceeds stood at $219.58million in June, up from $120.50million in May.
Following the collapse in global crude oil prices and demand, Nigeria’s crude oil revenue tumbled from $336.65million in January to $281.14million in February, $184.59million in March and $148.86million in April.
The international oil benchmark, Brent crude, had slumped to as low as $15.98 per barrel in April from $70 per barrel in January.
But oil prices have risen in recent months on the back of the production cuts by the Organisation of the Petroleum Exporting Countries (OPEC) and its non-members allies-OPEC+ as well as the gradual reopening of many economies.
Oil and gas accounts for about 50 per cent of Federal Government revenues and over 90 per cent of export earnings, although it represents only about 10 per cent of the country’s gross domestic product (GDP).
“A total export sale of $84.63million was recorded in July 2020, decreasing by 66.95 per cent compared to last month. Crude oil export sales contributed $55.29million (65.34 per cent) of the dollar transactions compared with $219.58million contribution in the previous month,” the NNPC said in its latest monthly report. The corporation said gas export sales amounted to $29.33m in July.
“The July 2019 to July 2020 crude oil and gas transactions indicated that crude oil and gas worth $3.91bn was exported,” it added.