Nigeria Misses Revenue Target on Low Oil Prices and Output

LAGOS (Capital Markets in Africa) — Nigeria could only collect about half of its budgeted revenues in the first five months of this year as low oil prices and output took a toll on government income.

Total earnings by the government from January to May were 1.48 trillion naira ($3.8 billion), which was 56% of targeted revenue for the period, Finance Minister Zainab Ahmed said during a presentation to lawmakers on Thursday. Earnings from crude sales accounted for about half of the total revenues with non-oil income contributing the balance.

“Although Nigeria’s total production capacity is 2.5 million barrels per day, current crude production is about 1.4 million barrels per day — in compliance with the Organization of the Petroleum Exporting Countries’ production quota – and an additional 300,000 barrels per day of condensates, totaling about 1.7 million barells per day,” Ahmed said.

Oil production will average 1.86 million barrels a day in 2021, rise to 2.09 million barrels a day in 2022, and 2.38 million barrels in 2023.

On the expenditure side, 1.25 trillion naira was spent on debt service and 1.32 trillion for personnel cost, including pensions, Ahmed said.