Nigeria’s oil revenue declines by 17 billion dollars, says Bismarck Rewane

Nigeria's Chief Executive Officer of Financial Derivatives Company Limited and a member of President Muhammadu Buhari's Economic Advisory Council, Bismarck Rewane, has predicted that Nigeria's oil revenue is likely to decline by between 70 percent and 80 percent this year, representing between 15 billion dollars and 17 billion dollars, according to a news report by Economic Confidential.

Rewane said this in a report he presented at the monthly Lagos Business School executive breakfast meeting for the month of May titled, 'Making Hay While the Sun Has Set'.

Recently, the Nigerian National Petroleum Corporation (NNPC) disclosed that the country has recorded crude oil and gas export sales revenue of 434.85 million dollars in January 2020.

Oil contributes 90 percent of the country's exports, 30 percent of bank credits, and 50 percent of fiscal revenues.

According to Rewane, the country's other domestic revenue sources have also been negatively affected by COVID-19.

He estimated a fiscal gap of between 15 billion dollars to 17 billion dollars, adding that government revenues have been under intense pressure.

"The federal government is struggling with the reduction and elimination of subsidies without sparking social unrest. Tax collection, mobilization, and prudent management of tax revenues will be topmost priorities, "Rewane said.

"Total external debt has risen to 31 billion dollars and will climb further with more lending from multi-laterals to 36 billion dollars. Debt service burden is already in excess of 96 percent of independent revenues and terms of trade to deteriorate sharply in 2020," he added.