Nigeria's state oil company records Aug, Sept losses

by Reuters 0

Nigeria’s state oil company reported a loss in September as persistently weak oil prices hurt Africa’s biggest crude producer, a report showed on Monday.

The report, published on the Nigerian National Petroleum Corporation’s (NNPC) website, showed it recorded a 59.40 million naira ($298,522) loss in September. It also recorded a loss of 60.67 million naira ($304,905) in August.

The unlisted company gave no figures for the same months last year. It began publishing provisional financial and operational reports last month as part of a drive by new chief Emmanuel Kachikwu to improve transparency in the oil sector, which has been beset by corruption and mismanagement for decades.

Africa’s largest economy, which relies on crude sales for around 70 percent of government revenues, has been hammered by the more than 50 percent fall in oil prices since June last year.

The report showed that total receipts for crude oil and gas exports between January and September 2015 were $3.69 billion.

Under Nigeria’s constitution, NNPC gives its oil revenue to the federal government, which then pays the company what it needs based on a budget approved by parliament.

Of the receipts, $610 million was remitted to the federation account, while the balance of $3.09 billion was used to fund joint venture cash calls for that period.

“The dwindling oil price has negatively affected the NNPC dollar contribution to the federation account,” the report said.