Despite the continued rise in the price of crude oil, the country's earnings from the commodity fell for the fourth month in a row with hopes of increased revenue.
This was revealed in the latest monthly economic report from the Central Bank of Nigeria (CBN) for January 2022.
According to figures from the Central Bank of Nigeria, the country earned N945 billion in January, which is 7.8% less than the N1.024 trillion planned for the month.
According to a breakdown of oil revenue components, the government received no revenue from crude oil and gas exports in January, marking the second month in a row that the government has received no revenue from such a significant source of revenue.
Due to mounting petroleum subsidy allegations, the Nigerian National Petroleum Company (NNPC) has delayed transferring revenues to the joint pool of the federal account in recent months.
According to the report, revenue from petroleum profit tax and royalties, which account for the majority of oil revenue, fell by 31% to N247 billion from N360 billion the previous month, falling short of the monthly target of N277 billion.
Stakeholders are concerned, however, that despite Nigeria's oil blend, Bonny Light, selling as the most expensive Organization of Petroleum Exporting Countries (OPEC) blend, the government has not reaped much cash.
Bonny Light was sold for $124.18 on Monday.
Mike Osatuyi, National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), says the drop in oil revenue is not surprising.
He stated that any government paying such a high subsidy should not expect to fully benefit from the soaring crude prices in the international market.
He warned that if the naira continues to weaken against the dollar, the country will have incurred over N5 trillion in subsidy payments by the end of the year. "It is not in the best interests of the country to incur such an expense."
The greatest way to combat this drop in oil revenue is to eliminate subsidies, but this is impossible right now because the country is hot.
Because there is inflation and citizens' lives are miserable, it is nearly impossible to eliminate subsidies.
Who, in today's Nigeria, can afford to buy petrol for about N600/litre if the subsidy is removed? " Osatuyi argued, adding that removing the subsidy would be tantamount to setting the country on fire.