Nigeria realised a total sum of N8.875trillion from the sale and exploration of petroleum resources between 2002 and 2006, a top official of Central Bank of Nigeria(CBN)announced on Friday. .

A News Agency of Nigeria report quoted Mr. Jide Aluko, CBN’s Deputy Director of Foreign Operations, as saying, “The amount comprises revenue from exports and petroleum profit tax/royalties paid to the Federal Government by the oil companies.

Aluko said that Nigeria’s major foreign reserves inflows during the period were derived from sale of crude oil equity, royalties, petroleum profit tax which is tax paid by oil companies on profits arising from their operations, a tax rate of 85 per cent effective from April 1, 1975 and penalty for gas flaring, rental and signature bonuses.

According to him, the breakdown of the N8.875trillion earned by government between 2002 and 2006 include N3.162trillion from crude oil receipts, N4.262trillion from petroleum profit tax and royalties, N1.045trillion from excess crude oil receipts and N405 billion from excess petroleum tax profits and royalties.

In 2002, he said the country earned N1,088trillion , comprising N584.648billion for crude oil receipts, N416.987billion from petroleum profit tax and royalties from oil companies, N76.703 billion from excess crude oil receipts and N9.737billion from excess petroleum tax profits and royalties.

Aluko said Nigeria in 2003 made N1.183trillion , comprising N449.456billion from crude oil recepits, N675.653billion from petroleum profit tax and royalties from oil companies, N57.368 billion from excess crude oil receipts and N687.3million from excess petroleum tax profits and royalties.

The country’s earnings in 2004, the CBN chief said totalled N1.716trillion made up of N764.491billion from crude oil receipts, N876.151billion from petroleum profit tax and royalties from oil companies, N71.699billion from excess crude oil receipts and N3.8billion from excess petroleum tax profits and royalties.

Aluko, in a paper titled “Monetisation of Nigeria’s Foreign Exchange Earnings “ said the country in 2005 realised N2.144trillion , comprising N694.041billion for crude oil receipts, N1.022 trillion from petroleum profit tax and royalties from oil companies, N260.583 billion from excess crude receipts and N167.479 billion from excess petroleum tax profits and royalties.

He put the country’s income from petroleum resources in 2006 at N2.743trillion , comprising N669.453billion from crude oil receipts, N1.2701trillion from petroleum profit tax and royalties and N223.589 billion from excess petroleum tax profits and royalties.

Aluko said various governments in Nigeria largely depended on foreign exchange earnings, mostly from oil and oil related sources to implement their budgets.

“As a result, it becomes imperative that the process of monetisation be carried out regularly to provide the needed funds,” the NAN quoted Aluko as saying.