Nigeria’s Oil Revenues Drop

31 March 2009 (Last Updated March 31st, 2009 18:30)

Nigeria's revenue from oil has decreased from N330bn ($2.2bn) monthly recorded in 2008 to about N150bn ($1bn) in January 2009, according to media sources. The Nigeria National Petroleum Corporation (NNPC) said that this represents a 50% drop in the oil revenue flow compared with 2008. N

Nigeria's revenue from oil has decreased from N330bn ($2.2bn) monthly recorded in 2008 to about N150bn ($1bn) in January 2009, according to media sources.

The Nigeria National Petroleum Corporation (NNPC) said that this represents a 50% drop in the oil revenue flow compared with 2008. NNPC said that the government should take measures to guarantee the survival of the industry and that there should be an urgent review of the cost profiles of projects in the sector.

NNPC group managing director (GMD), Mohammed Bakindo said that the fall is occasioned by the slide in the price of crude, which decreased from as high as N22,500 ($150) per barrel in 2008 to as low as N6,450 ($43) per barrel this year.

Bakindo said that the situation is being worsened by the decrease in crude pumping from 2.8m barrels per day in 2008 to below budgetary expected 2.3m barrel per day.

The 2009 budget is predicated on a N6,750 ($45) per barrel sales benchmark.

He said that the global financial crisis is having a pessimistic impact on the demand for crude oil, adding that it would persist to cause a downward push in prices.

"The National Assembly should as a matter of urgency start looking not only on the current condition of the industry but on the impact of the turmoil of the international economy on our domestic economy and our industry in particular," he said.