- Nigeria's oil sales revenue plunged in the month of July, according to the latest report from the NNPC
- The report indicated that the revenue dipped by 74.89% in July to $55.29million from $219.58million in June
- Oil and gas accounts for about 50% of federal government revenues and over 90% of export earnings
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Nigeria's economy is facing critical challenges as the federal government's revenue from the sale of crude oil has plunged by 74.89% in July to a record low of $55.29million.
According to The Nation, the oil sales record in captured in the latest data released by the Nigerian National Petroleum Corporation (NNPC).
Legit.ng gathers that the NNPC data on the federal government’s export lifting showed that the crude oil sales proceeds stood at $219.58million in June, up from $120.50million in May.
Due to the collapse in global crude oil prices, Nigeria’s crude oil revenue tumbled from $336.65million in January to $281.14million in February, $184.59million in March and $148.86million in April.
The NNPC said in its latest monthly report:
“A total export sale of $84.63million was recorded in July 2020, decreasing by 66.95 per cent compared to last month. Crude oil export sales contributed $55.29million (65.34 per cent) of the dollar transactions compared with $219.58million contribution in the previous month,”
The corporation said gas export sales amounted to $29.33m in July.
“The July 2019 to July 2020 crude oil and gas transactions indicated that crude oil and gas worth $3.91bn was exported,” it added.
Oil and gas accounts for about 50% of federal government revenues and over 90% of export earnings, although it represents only about 10 per cent of the country’s Gross Domestic Product (GDP).
Meanwhile, despite the uncertainties created by the COVID-19 pandemic, President Muhammadu Buhari has expressed confidence that the Nigerian economy would bounce back strongly.
The president on Tuesday, September 15, at the 13th annual banking and finance conference in Abuja said his administration has implemented policies that would address the challenges caused by the pandemic.
Buhari, who was represented at the occasion by the minister of finance and national planning, Zainab Ahmed stated that the government has taken measures to mitigate the impact of the pandemic on key necessities.
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