Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Ganduje Resigns As APC National Chairman

    June 27, 2025

    NAPTIP Declares Speed Darlington Wanted Over Rape Allegations

    June 27, 2025

    PDP BoT Rejects Anyanwu’s Reinstatement As National Secretary

    June 27, 2025
    Facebook X (Twitter) Instagram
    Trending
    • Ganduje Resigns As APC National Chairman
    • NAPTIP Declares Speed Darlington Wanted Over Rape Allegations
    • PDP BoT Rejects Anyanwu’s Reinstatement As National Secretary
    • Tinubu Signs Four Landmark Tax Reform Bills Into Law
    • Osun State Declares Friday Public Holiday To Celebrate Hijrah
    • Insecurity: Lakurawa Kills 6, Injures 1 In Sokoto Community
    • Court Sentences Gospel Singer, Timilehin To Death For Killing NYSC Member
    • Anyanwu’s Reinstatement As National Secretary, A Painful Decision – Damagum
    Facebook X (Twitter) Instagram
    TheScrutinyNG
    Subscribe
    Sunday, June 29
    • Home
    • Politics
    • Business
    • News
      • World News
    • Sports
    • Interviews
    • Opinion
    • Entertainment
    • Columnists
    • ABOUT US
    TheScrutinyNG
    Home » Operational Inefficiencies, Ageing Pipelines Threaten Oil Production Goals – CBN
    3 Mins ReadDecember 27, 2024

    Operational Inefficiencies, Ageing Pipelines Threaten Oil Production Goals – CBN

    By Samuel AkpenpuunDecember 27, 2024No Comments3 Mins Read
    Share Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    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.

    The ageing infrastructure not only reduced efficiency but also undermined the country’s ability to meet its OPEC production quota.

    The report noted that global factors further compounded the situation, as the average spot price of Nigeria’s Bonny Light crude fell by 5.45 per cent to $82.23 per barrel during the quarter, reflecting subdued demand in the global market.

    Similar declines were observed in other crude benchmarks, including Brent and the OPEC Reference Basket.

    While the oil sector struggled, the Nigerian economy recorded growth of 3.46 per cent in Q3 2024, up from 3.19 per cent in the second quarter, driven largely by the non-oil sector, which contributed 3.18 percentage points to total GDP growth.

    The oil sector’s growth slowed to 5.17 per cent year-on-year, compared to 10.15 per cent in the previous quarter, as operational inefficiencies and declining crude oil prices took a toll.

    The fiscal implications were significant, with federally collected revenue falling 23.71 per cent short of the budget benchmark, despite a 7.48 per cent quarter-on-quarter increase.

    The fiscal deficit, although narrowing by 22.51 per cent compared to the previous quarter, widened by 43.88 per cent relative to the quarterly target, reflecting ongoing fiscal pressures.

    The report concluded that Nigeria’s goal of achieving an oil production target of 2mbpd by the end of 2024 remains under threat due to these challenges.

    Author

    • Samuel Akpenpuun
      Samuel Akpenpuun

      View all posts
    CBN OPEC
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Samuel Akpenpuun

    Related Posts

    Breaking News

    Tinubu Signs Four Landmark Tax Reform Bills Into Law

    June 26, 2025
    Breaking News

    Multichoice Slashes DStv Decoder Price By 50 Percent

    June 25, 2025
    Aviation

    FCCPC Invites Air Peace Over Failure To Refund Fares For Canceled Flights

    June 16, 2025
    Business

    May & Baker Posts N28.9bn Revenue, N1.6bn PAT

    June 6, 2025
    Economy

    POS Fraud Surge: Ubani Demands Crackdown to Save Nigeria’s Financial System

    June 4, 2025
    Banking & Finance

    Access ARM Pensions Posts N28.2bn Revenue

    June 2, 2025

    Subscribe to News

    Get the latest sports news from NewsSite about world, sports and politics.

    Editor's Picks

    Ganduje Resigns As APC National Chairman

    June 27, 2025

    NAPTIP Declares Speed Darlington Wanted Over Rape Allegations

    June 27, 2025

    PDP BoT Rejects Anyanwu’s Reinstatement As National Secretary

    June 27, 2025

    Tinubu Signs Four Landmark Tax Reform Bills Into Law

    June 26, 2025
    Latest Posts
    Advertisement
    Facebook X (Twitter) Pinterest Vimeo WhatsApp TikTok Instagram

    News

    • World
    • US Politics
    • EU Politics
    • Business
    • Opinions
    • Connections
    • Science

    Company

    • Information
    • Advertising
    • Classified Ads
    • Contact Info
    • Do Not Sell Data
    • GDPR Policy
    • Media Kits

    Services

    • Subscriptions
    • Customer Support
    • Bulk Packages
    • Newsletters
    • Sponsored News
    • Work With Us

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    © 2025 The Scrutiny. Designed by Design Streams.

    • Privacy Policy
    • Terms
    • Accessibility

    Type above and press Enter to search. Press Esc to cancel.