Nigeria’s proceeds from the sale of crude oil, liquefied petroleum gas (LPG) and gas feedstock fell by $43.24 million (about N8.5bn), from $445.7m (N87.8bn) in October to $402.55m (N79.3bn) in November 2015, representing a 9.70 per cent drop.
The figures are contained in the latest Nigerian National Petroleum Corporation’s (NNPC) monthly financial and operations report for November 2015.
The NNPC attributed the decline in the value of oil export to the 11 per cent drop in export lifting relative to the previous month’s lifting.
The report, which covers the activities of the NNPC for the period of January to November 2015, said the country has so far earned $4.54bn from crude oil and gas.
“Of the total receipts, the sum of $0.61bn was remitted to Federation Account, while the balance of $3.94bn was used to fund the JV Cash Call for the period. Thus, JV funding has gulped more than 86 per cent of the proceeds. The deterioration in crude oil & gas receipt is in response to the continued decline in oil price,” the NNPC explained in the report.
The corporation disclosed that the downtrend in global oil prices continue to affect the energy industry worldwide, with an average crude price of $44.29 per barrel on dated Brent benchmark throughout November 2015
“A key constraint to the Nigerian upstream sector has been under-funding of the sector, which prompted the use of debt to finance essential projects aimed at arresting production decline and grow producible reserves,” the report stated.
To this end, the NNPC said it has commenced alternative financing initiative strategies, including sending out Requirement For Proposals (RFPs) to selected institutions to commence the process of selecting financial advisors by January 2016.