The Central Bank of Nigeria has attributed the significant decline in oil revenue for the third quarter of 2024 to ageing pipeline infrastructure and operational inefficiencies.
According to the apex bank’s latest economic report for the third quarter of 2024, oil revenue fell by 24.72 per cent to N1.30tn compared to the second quarter of 2024.
This drop was largely due to lower receipts from petroleum profit tax and royalties. Also, the revenue figure fell short of the quarterly target by 75.39 per cent, primarily due to frequent shut-ins caused by deteriorating pipelines and installations.
The report read, “Oil revenue, however, fell by 24.72 per cent to N1.30tn, relative to the level in Q2 2024 on account of lower receipts from petroleum profit tax and royalties.
“It was also 75.39 per cent short of the quarterly target due to shut-ins, arising from ageing oil pipelines and installations.”
It also noted that despite a modest increase in crude oil production to 1.33 million barrels per day from 1.27 mbpd in the preceding quarter, challenges including theft, vandalism, and infrastructure deficits severely hampered Nigeria’s oil revenue performance.
