Economy
CBN Blames Ageing Pipelines for Oil Revenue Crash
Abuja – The Central Bank of Nigeria (CBN) has attributed a significant decline in oil revenue for the third quarter of 2024 to ageing pipeline infrastructure and operational inefficiencies.
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Odu’a Investment Acquires 10% Stake in FCMB Pensions
Odu’a Investment Company Limited has acquired a 10 per cent minority equity stake in FCMB Pensions Limited, a subsidiary of FCMB Group Plc, in a move to strengthen its presence in Nigeria’s pension sector. The company said the transaction followed regulatory approvals from the National Pension Commission and the Central Bank of Nigeria, while the…
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Nigeria Records $96bn Crypto Transactions – SEC
Nigeria’s digital finance ecosystem recorded approximately $96 billion in cryptocurrency and virtual asset transactions, according to the Director-General of the Securities and Exchange Commission, Emomotimi Agama. Agama disclosed this during a stakeholders’ engagement session organised by the Federal Ministry of Finance in Abuja, noting that the scale of activity underscores the need for stronger regulatory…
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Nigeria to Adopt T+1 Settlement Cycle in Capital Market
Nigeria’s capital market will transition to a T+1 settlement cycle from May 29, 2026, in a move aimed at improving efficiency and aligning with global standards. The change was announced by the Central Securities Clearing System, the clearing and settlement arm of the Nigerian Exchange Group. Under the new framework, all securities transactions will be…
The apex bank’s latest economic report revealed a 24.72% drop in oil revenue to N1.30 trillion compared to the second quarter. This shortfall was primarily due to lower receipts from petroleum profit tax and royalties. Furthermore, the revenue significantly missed the quarterly target by 75.39%, largely attributed to frequent shutdowns caused by deteriorating pipelines and installations.
Despite a modest increase in crude oil production, challenges like theft, vandalism, and infrastructure deficits severely impacted Nigeria’s oil revenue performance. The report highlighted that the ageing infrastructure not only reduced efficiency but also hindered the country’s ability to meet its OPEC production quota.
Global factors also contributed to the decline, with the average spot price of Nigeria’s Bonny Light crude falling by 5.45% to $82.23 per barrel during the quarter.
While the oil sector struggled, the Nigerian economy recorded a 3.46% growth in Q3 2024, driven by the non-oil sector. However, the oil sector’s growth slowed to 5.17% year-on-year due to operational inefficiencies and declining crude oil prices.
The fiscal implications were substantial, with federally collected revenue falling short of the budget benchmark. The fiscal deficit, though narrowing compared to the previous quarter, widened significantly relative to the quarterly target, reflecting ongoing fiscal pressures.
The report concluded that Nigeria’s goal of achieving an oil production target of 2 million barrels per day by the end of 2024 remains under threat due to these persistent challenges.
