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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Nigeria Set to Clear IMF Loan by 2029
Nigeria is on course to complete repayment of its International Monetary Fund (IMF) Rapid Financing Instrument (RFI) loan by 2029, based on the latest repayment schedule published by the IMF. The country received emergency support amounting to 2,454.50 million Special Drawing Rights (SDRs), roughly equivalent to $3.32 billion at the current exchange rate of SDR1…
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Court Dismisses Request to Halt CBN’s Use of eNaira Trademark
A Federal High Court in Abuja has rejected an application seeking to temporarily stop the Central Bank of Nigeria (CBN) from using the “eNaira” trademark. The request was filed by eNaira Payment Solutions Limited, which asked the court to restrain the apex bank from asserting ownership of the eNaira name in the United States or…
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Ex-South Korean PM Han Duck-soo Enters Presidential Race
Han Duck-soo, former Prime Minister of South Korea, has officially declared his intention to run for president in the upcoming snap election set for June 3. The election follows the impeachment and removal of President Yoon Suk Yeol, whose December declaration of martial law sparked a prolonged political crisis. Han’s candidacy comes amid rising political…
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.
