Nigeria’s revenues dropped 4.7 percent to N370.388 billion ($1.86 billion) in January from N387.777 billion in December due to the slump in oil prices, the Finance Minister Kemi Adeosun said on Tuesday.
“There was a slight increase in production of crude in December 2015 but the resulting income was marginal due to a 10 percent drop in crude oil prices,” Adeosun said in a statement.
“Shut-in and shut-down of operation for repairs and maintenance continued during the period under review,” she added.
The minister explained that the revenue includes VAT of N69.7 billion, refunds from state oil firm NNPC totalling N6.3 billion and exchange gains of N3.4 billion, in addition to statutory revenue of N290.9 billion. The revenue will be distributed to the federal, state and local authorities.
Nigeria, Africa’s largest economy, depends on oil for more than 70 percent of its revenue. It has, therefore, been hard hit by the fall in global oil prices since mid-2014.
According to Adeosun, the drop in the average price of crude oil from $43.40 in November 2015 to $39.04 in December 2015 resulted in a revenue loss of $22.55 million.