Nigeria’s oil and gas sector experienced a remarkable surge in earnings in the first quarter of 2024, according to the Central Bank of Nigeria’s (CBN) latest economic report. The sector raked in N1.531 trillion, representing a 39.56 per cent increase from the previous quarter’s N1.097 trillion.
This impressive growth also translates to a 14.17 per cent rise compared to the same period in 2023, when oil earnings stood at N1.341 trillion. The oil sector accounted for 31.4 per cent of the country’s total federation revenue, which reached N4.877 trillion.
Breaking down the figures, crude oil and gas exports generated N182.65 billion, a staggering 818.76 per cent increase from the preceding quarter’s N19.88 billion. Petroleum profit tax (PPT) earnings also rose to N366.93 billion, up from N136.67 billion in Q4 2023.
Domestic crude oil production saw a marginal increase, thanks to enhanced security measures in oil-producing areas. Average daily production rose 1.53 per cent to 1.33 million barrels per day (MBPD).
However, the energy sector faced challenges, including decreased water supply to hydro substations, reduced gas supply, and vandalism of electricity infrastructure. Electricity production contracted by 46.04 per cent quarter-on-quarter.
The CBN’s report shows the complexities of Nigeria’s energy landscape, where significant oil and gas revenues coexist with infrastructure challenges.
Source: Central Bank of Nigeria’s Economic Report for Q1 2024.
