Nigeria earned over $5b from oil and gas in 2019 – NNPC

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… Records $434m sales in January

… Expert recommends fiscal tightening

NIGERIAN National Petroleum Corporation (NNPC) said the country exported oil and gas worth about $5.18 billion in the last one year. The period covers between January 2019 and January 2020.

  The country also recorded crude oil and gas export sale of $434.85 million in January 2020 alone. This represents an increase of 94.30 per cent when compared by December 2019 figures.

  Group General Manager of NNPC in charge of Public Affairs, Dr. Kennie Obateru, disclosed this yesterday in Abuja while presenting NNPC’s Monthly Financial and Operations Report (MFOR) for January.

  According to the report, the corporation said the month’s crude oil export sales contributed $336.65 million (77.42 per cent) of the dollar transactions for the period which rallied at $136.36 million sales in the preceding month.

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The report added that export gas sales in January amounted to $98.20 million, noting that 2019 to January 2020 crude oil and gas transactions valued at $5.18 billion was exported, with the January 2020 edition of the monthly report of the corporation being the 54th edition of the series.

It also said vandalism of NNPC pipelines across the country recorded a phenomenal spike of 50 percentage increase in January when 60 pipeline points were vandalised compared to the 40 incidents recorded in December last year.

“Atlas Cove-Mosimi and Mosimi-Ibadan axis pipelines accounted for 50 per cent and 17 per cent of the breaks respectively, while all other routes accounted for the remaining 33 per cent.

Gas flare rate was 7.90 per cent for the month under review i.e. 643.59mmscfd, compared with average gas-flare rate of 8.46 per cent i.e. 671.40mmscfd, for the period January 2019 to January 2020.

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Out of the 1,167.80mmscfd of gas supplied to the domestic market in January 2020, about 639.70mmscfd of gas, representing 54.78 per cent was supplied to gas-fired power plants, while the balance of 528.10mmscfd or 45.22 per cent was supplied to other industries,” the report said.

  However, one-time President of Petroleum Technologists Association of Nigeria (PETAN) yesterday recommended that governments must exert stricter focus on fiscal policies to survive the impact of the global crash of oil prices.

  Okoroafor said this in  Abuja during an interview with newsmen.

  According to him, the fiscal policies will be able to drive investment and government must ensure strict measures to help the nation’s economy that depends solely on oil revenue.

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  “This is not a good time for our economy. Our 2020 budget was based on $57 dollars per barrel of crude oil and about 2.18 million barrels of oil per day.

  Our economy is in great danger with the Coronavirus causing blockages in economic activity, the Russia-Saudi oil price war and the weak oil demand from China.

Also, with our budget premised on N2.45 trillion deficits, our weak and non-existent infrastructure, our dwindling foreign reserves, and our blatant refusal to diversify during boom times, we cannot even implement the budget. We cannot raise the required revenue from crude sales or taxes. The general economic landscape does not look good.

  “The general welfare of the masses will remain pathetic and depressing for a long time,” he said.

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