Nigeria’s oil sales revenue crumbles by 75% – NNPC data

Nigeria’s crude oil earnings dived by 74.89% in July to $55.29 million, data from the Nigerian National Corporation (NNPC) on the Nigerian government’s export lifting shows.

Proceeds from crude oil sales were $219.58 million in June, advancing from $120.50 million in May.

Africa’s largest oil producer, taking a battering from the oil crash that saw crude prices to plumb new lows in April amidst the slowdown from the coronavirus pandemic, reported falls in revenue from $336.65 million in January to $281.14 million in February and from $184.59m in March to 148.86m in April.

In any event, oil prices have posted moderate gains lately, supported by supply cuts by the Organisation of the Petroleum Exporting Countries and its allies, with the gradual restart of economies reeling from the coronavirus crisis offering further boost.

Read also: Nigeria’s oil output rises by 9% as OPEC forecasts fall in demand

“A total export sale of $84.63m was recorded in July 2020, decreasing by 66.95 per cent compared to last month,” said NNPC in its latest monthly report.

Crude oil export sales contributed $55.29m (65.34 per cent) of the dollar transactions compared with $219.58m contribution in the previous month.”

The country’s crude oil export value from July 2019 to July 2020 totalled $3.91 billion the state-owned firm stated, noting that gas export brought in $29.33 million in July this year.

Crude oil and gas lifting in Nigeria are generally categorised into domestic and equity export. NNPC does the lifting and the marketing, and transfers the proceeds into government’s purse.

“Domestic crude oil of 445,000bpd is allocated for refining to meet domestic products supply. Payments are effected to Federation Account by NNPC after adjusting crude and product losses and pipeline repairs and management cost incurred during the period,” NNPC said.

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