(Ecofin Agency) - Nigeria's distributable revenues have dropped to N429.127 billion in February from the N465.19 billion recorded in January. This drop is ascribed to the lower oil prices in the global market paired with attempts to sabotage oil pipelines in the country, a government statement revealed on Tuesday.

According to the statement, oil prices fell to $44.74 from $49.57 per barrel in February. “Production diminished during the period due largely to leakages in the pipelines arising from sabotage.”

It added that the amount which is distributed between the federal, state and local government council comprises of the month’s statutory distributable revenue of N258.692 billion, Value Added Tax of N69.207 billion, Exchange gain of N40.329 billion and Excess PPT Account of N60.899 billion. There was also a payment of N6.330 billion made by the Nigerian National Petroleum Corporation (NNPC) to the Federal Government.

Nigeria, which entered its first recession last year, relies on crude oil sales for two-thirds of its government revenue, but this sale has been hit hard by the fall in global crude prices since mid-2014, paired with militant attacks on oil and gas facilities in the southern Niger Delta energy hub for a year.

Anita Fatunji