The Nigerian Nationwide Petroleum Company NNPC has disclosed that the Federal Authorities’s crude oil gross sales income plunged by 74.89 % in July to a report low of $55.29m.
The NNPC’s newest information on the Federal Authorities’s export lifting confirmed that its crude oil gross sales proceeds stood at $219.58m in June, up from $120.50m in Could.
Following the collapse in international crude oil costs and demand, Nigeria’s crude oil income tumbled from $336.65m in January to $281.14m in February, $184.59m in March, and $148.86m in April.
The worldwide oil benchmark, Brent crude, had slumped to as little as $15.98 per barrel in April from $70 per barrel in January.
However oil costs have risen in current months on the again of the manufacturing cuts by the Organisation of the Petroleum Exporting Nations and its allies in addition to the gradual reopening of many economies.
Brent, in opposition to which Nigeria’s oil is priced, stood at $43.15 per barrel as of seven:30 pm Nigerian time on Sunday.
Oil and fuel account for about 50 % of the Nigerian authorities revenues and over 90 % of export earnings, though it represents solely about 10 % of the nation’s GDP.
The company mentioned fuel export gross sales amounted to $29.33m in July.
July 2019 to July 2020 crude oil and fuel transactions indicated that crude oil and fuel value $3.91bn was exported,” it added.
In keeping with the report, the federation crude oil and fuel lifting are broadly labeled into fairness export and home, and are lifted and marketed by the NNPC whereas the proceeds remitted into the Federation Account.
The NNPC in accordance with the report additionally lifts crude oil and fuel on behalf of the Division of Petroleum Sources and the Federal Inland Income Service and the proceeds are remitted into Federation Account.