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.
-
Zenith Bank Targets Exit from CBN Forbearance Regime by End of June
Zenith Bank Plc has disclosed that it will exit the regulatory forbearance framework of the Central Bank of Nigeria (CBN) by June 30, 2025. The update was contained in a corporate filing submitted to the Nigerian Exchange Limited on Wednesday. The development follows the apex bank’s recent directive restricting dividend payments, executive bonuses, and offshore…
-
NNPCL, Kyari Deny Bias in Niger Delta Contract
The Nigerian National Petroleum Company Limited (NNPCL) and its former Group Chief Executive Officer, Mele Kyari, have pushed back against claims that they improperly awarded a pipeline surveillance contract in the Niger Delta to Tantita Security Services Limited. The allegations were brought before the Federal High Court in Abuja by the Incorporated Trustees of the…
-
GTBank Begins Deducting N6.98 USSD Fee from Airtime Balances
Guaranty Trust Bank has commenced a new billing structure for its USSD banking services, with transaction fees of ₦6.98 now being deducted directly from customers’ mobile airtime balances instead of their bank accounts. In a notice to customers, the bank announced the implementation of the change effective June 18, 2025. The shift follows a broader…
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.