NIGERIA’S crude oil sales revenue dropped by 75 per cent in July and the country recorded $55.29 million as proceeds as against $219.58 million realised in June.

According to the records released by the Nigerian National Petroleum Corporation (NNPC), the Federal Government’s crude oil export lifting revealed that its crude oil sales proceeds improved from what it was in May when the country recorded $120.50 million sales but dropped by 75 per cent in July.

After the collapse in global crude oil prices and demand due to COVID-19 pandemic, Nigeria’s crude oil revenue has been nosediving, falling from $336.65 million in January to $281.14 million in February, $184.59 million in March and $148.86 million in April respectively.

However, the rise in oil prices in recent months particularly as witnessed in July can be attributed to the production cuts implemented by the Organisation of the Petroleum Exporting Countries (OPE), and its allies as well as the gradual reopening of many economies.

“A total export sale of $84.63 million was recorded in July 2020, decreasing by 66.95 per cent compared to last month. Crude oil export sales contributed $55.29 million of the dollar transactions compared with $219.58 million contributions in the previous month,” the NNPC stated in its latest monthly report.

Brent crude which Nigeria’s oil benchmark stood at $41.65 per barrel as of 12:00 pm Nigerian time on Monday.

The crude oil price was $70 per barrel in January before the outbreak of COVID-19 pandemic which crashed the prices between March and April.

Oil and gas account for about 50 per cent of the Nigerian government revenues and over 90 per cent of export earnings, which represent only about 10 per cent of the country’s GDP.

“A total export sale of $84.63 million was recorded in July 2020, decreasing by 66.95 per cent compared to last month,”  the NNPC report further revealed.

The report stated that crude oil export sales contributed $55.29million of the dollar transactions compared with $219.58m contribution in the previous month.

It, however, said between July 2019 to July 2020, crude oil and gas transactions indicated that crude oil and gas worth $3.91 billion was exported.

The report stated that the federation crude oil and gas lifting were broadly classified into equity export and domestic, and are lifted and marketed by the NNPC while the proceeds are remitted into the Federation Account.

“Equity export receipts, after adjusting for joint venture cash calls, are paid directly into Federation Account domiciled in the Central Bank of Nigeria while gas export sales amounted to $29.33 million in July,” the report read.

“Domestic crude oil of 445,000 barrels per day is allocated for refining to meet domestic products supply. Payments are effected to Federation Account by NNPC after adjusting crude and product losses and pipeline repairs and management cost incurred during the period.”

The NNPC lifts crude oil and gas on behalf of the Department of Petroleum Resources (DPR) and the Federal Inland Revenue Service (FIRS) and the proceeds are remitted into Federation Account, according to the report.