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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FG Secures £746m UK-Backed Deal to Transform Nigeria’s Seaports
The Federal Government has unveiled a £746 million financing agreement with the United Kingdom aimed at modernising Nigeria’s seaport infrastructure, in a move expected to reshape the country’s maritime and trade landscape. Details of the agreement were provided by Bolaji Akinola, Special Adviser to the Minister of Marine and Blue Economy, who confirmed that the…
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CBN Moves to Raise N3 Trillion Through Treasury Bills Auctions
The Central Bank of Nigeria is set to raise N1.05 trillion through a Treasury Bills auction, bringing total short-term borrowing to nearly N3 trillion within two weeks. The issuance, conducted on behalf of the Debt Management Office, will be executed using a Dutch auction system, allowing yields to be determined by market demand and prevailing…
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Court Fines 10 Filipinos $6 Million Over Cocaine Smuggling in Nigeria
A Federal High Court in Lagos has convicted 10 Filipino sailors and their vessel, MV Nord Bosporus, imposing a combined penalty of $6 million and N1.1 million for drug trafficking offences. The ruling followed the seizure of 20 kilograms of cocaine aboard the vessel at the Apapa seaport in November 2025 by operatives of the…
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.