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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Mutual Benefits Records N39bn Gross Premium Growth
Mutual Benefits Assurance Plc reported a significant rise in its gross premium written, which increased by 77% to N39.3 billion in the first half of 2024, compared to N22.16 billion recorded during the same period in 2023. The company’s unaudited financial statements for the period ending June 30, 2024, filed with the Nigeria Exchange Limited…
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FAO and NESG Call for Reforms to Solve Nigeria’s Food Security Challenges
The Food and Agriculture Organization (FAO) of the United Nations and the Nigerian Economic Summit Group (NESG) have called for significant policy reforms to tackle Nigeria’s food security crisis. During a high-level meeting, FAO Nigeria Country Representative Dominique Koffy Kouacou led deliberations on innovative approaches to ensure food accessibility, affordability, and availability. The discussions addressed…
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Customs Seize $1.1 Million and SR135,900 in Undeclared Currency at Kano Airport
The Nigeria Customs Service (NCS) recently confiscated $1.154 million and 135,900 Saudi Riyals in undeclared foreign currency at the Mallam Aminu Kano International Airport. This was revealed in a statement issued on Thursday by the Customs National Public Relations Officer, Abdullahi Maiwada. According to Maiwada, the discovery was made during a routine baggage inspection of…
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.