Business Hilights
Tracking Nigeria's Headline Business News Online

Militancy, oil theft deflated 12% from Sept oil earnings—FG

The Ministry of Finance yesterday linked declining oil production and export volumes to militancy and large-scale crude theft cut the Nigerian government’s gross revenue in September by about 12% from August to N279.75 billion ($8 billion).

The ministry said that despite the rally in global oil prices averaging $48.43/b in June, Nigeria’s export volume declined by 1.15 million barrels in that month, resulting in a $46.52 million drop in oil export sales for the government.

Nigeria’s oil exports sales are accrued to the government’s account two or three months later.

A statement from the Ministry said “Force majeure was declared at the Bonny Terminal and there was a subsisting force majeure at the Forcados Terminal”.

“Shut-in and shutdown of pipeline for repairs and maintenance also contributed to the drop in revenue.”

Since 1970, oil exports account for about 80% of the Nigerian government revenue.

Nigerian oil output plummeted to near 30-year lows of around 1.4 million b/d in May from 2.2 million b/d earlier in the year as attacks on oil facilities in the Niger Delta rose at an alarming pace amid resurgent militancy.

The Nigerian Navy also revealed on Friday that it has arrested 13 suspected oil thieves who illegally tapped into pipelines in the Escravos area of the Niger Delta, to siphon about 900 mt of crude oil.

Navy spokesman Christian Ezekobe said in a statement that “The suspects and exhibits have been handed over to officials of [state security] for necessary action,” adding that the military was determined to eliminate crude oil theft and other criminal activities in the restive Niger Delta region.