SEE How Drastically Nigeria’s Oil Revenues Declined

The Nigerian National Petroleum Corporation’s report shows why Nigeria’s economy experiences difficulties – and if the trend continues the situation may get even worse.

Slumping oil prices heavily affected Nigeria oil revenues
Source: NNPC

Nigeria’s oil revenues sharply declined within a year by over two thirds, says the report, recently published by the NNPC.
The NNPC report shows that oil revenues declined more than 67 per cent over a period of time since September 2014 till July 2015, and that had “dire consequences to the federation“. However, if that rends continues, the situation in Nigeria’s economy, heavily dependent on oil revenues, may get even worse. Nigeria derives more than 90 per cent of its foreign exchange earnings from crude.
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Slumping oil prices heavily affect Nigerian economy, influencing the possibility of federal budget to dispense allocation between states experiencing serious difficulties in paying their civil servants’ wages.
Besides that, from the beginning of the year 2015 to date “about N45.8Bn recorded as crude oil and product theft and losses resulting from vandalized pipelines”.
The NNPC monthly report on its revenues is an innovation introduced by NNPC’s new boss Emmanuel Ibe Kachikwu, a lawyer and a former Exxon executive, recently appointed by Muhammadu Buhari as part of his war against corruption in the country’s state-run oil giant.
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“This publication of Nigerian National Petroleum Corporation (NNPC) monthly operational report is one of the initiatives of the Corporation in its on-going restructuring efforts to ensure probity, transparency and accountability in the conduct of its business”, the report says.
The NNPC report shows that total receipts for oil and gas exports from the beginning of the year to August 2015 amounted to $3.4 billion.
Nigeria is one of the largest oil producers in Africa and one of the world’s leading exporters. Oil makes up to 90 per cent of the Nigerian exports. And now when oil prices are still falling, Nigeria and Nigerians risk to suffer the biggest crisis.