Oil price drop reduces sector’s output by N3.6tn in 2015

The massive drop in global oil prices impacted negatively on the performance of the Nigerian oil and gas sector, which recorded a decline of N3.6tn in output in the 2015 fiscal period, The Punchreports.

A report showing the performance of the sector, which was obtained from the National Bureau of Statistics (NBS), revealed that in monetary terms, the sector recorded a huge decline of 37.5 per cent from N9.61tn in 2014 to N5.99tn at the end of last year.

Further analysis of the report showed that since the second quarter of the 2014 fiscal year, the petroleum sector had been recording steady decline in output Between the first and second quarters of 2014, the sector witnessed an increase in output from N2.61tn to N2.63tn. However, due to the drop in oil prices, which began in June 2014, the sector’s contribution to the economy could not be sustained as it started declining steadily from the third quarter.

No Comments Yet.

Leave a comment