MetroBusinessNews

Nigeria revenues for state and local govts up 16 pct in January

Nigeria’s distributable government revenues rose in January by 16 percent to 465.19 billion naira ($1.5 billion) as it brought in more oil royalties, the accountant general’s office said in a statement on Tuesday.

Distributable revenue is government income that is shared at various levels of state including the federal government, state governments and local government councils.

Average oil prices rose from $47.30 to $49.57 per barrel during January, while the total crude export volume rose 1.49 million barrels, the statement said.

OPEC member Nigeria, which last year entered its first recession in a quarter of a century, relies on crude oil sales for two-thirds of its government revenue but has been hit hard by the fall in global crude prices since mid-2014.

Militants have carried out attacks on oil and gas facilities in the southern Niger Delta energy hub for a year, cutting oil production – which stood at 2.1 million barrels per day at the start of 2016 – by as much as a third, though output has since mostly recovered.

The frequency of attacks has slowed in recent months with talks between the government and Delta community leaders to address the grievances of militants, who want the oil hub to receive a greater share of the country’s energy wealth.

Repairs on damaged facilities are underway, but force majeure stoppages remain in place at the Forcados, Qua Iboe and Brass oil terminals.

“Federation revenues increased despite the force majeure and the shut-down of pipelines for repairs and maintenance due to leakages and sabotage,” said the statement.

 

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