FG revenues rise in March due to higher oil royalties

Federal Government’s distributable revenues rose to N467.81 billion ($1.53 billion) in March from 429 billion naira in February due to higher royalties from oil production, a government statement said on Tuesday.
Distributable revenue is government income that is shared at various levels of state including the federal government, state governments and local government councils.
The revenues were boosted by “a noteworthy increase in revenue from oil royalty,” said the statement.
However, the rise was slightly offset by low levels of crude oil production, despite prices rising from $44.74 to $52.86 per barrel in March, the statement said.
Revenues from crude exports fell by $6.4 million due to a “decrease in crude oil export volume,” said the statement, adding that production fell largely due to sabotage to pipelines causing leaks and the shutdown of major terminals such as Forcados.
OPEC member Nigeria, which last year entered its first recession in a quarter of a century, relies on crude oil sales for two-thirds of its government revenue but has been hit hard by the fall in global crude prices since mid-2014.
Militants have carried out attacks on oil and gas facilities in the southern Niger Delta energy hub for a year, cutting oil production – which stood at 2.1 million barrels per day at the start of 2016 – by as much as a third, though output has since mostly recovered.
Attacks have halted in recent months with talks between the government and Delta community leaders to address the grievances of militants, who want the oil hub to receive a greater share of the country’s energy wealth.
Source: Reuters.