The government’s stranglehold on the oil and gas sector is taking a continuing toll on the economy, with companies in the downstream sector seeing a hit to their revenues. The major players which include Total Nigeria Plc, Mobil Nigeria Plc, MRS Nigeria Plc and Forte Oil Nigeria Plc had their cumulative revenue falling by 19.16 percent to N608.58 billion, according to data compiled by BusinessDay from their latest 2015 financials. The firms cumulative net profits were down 7.40 percent to N15.655 billion from N16.90 billion in 2014.
Analysts say these firms have been consistently hit hard by delays in subsidy payment which result in shortage in petroleum products and supply.While the government had saved N1 trillion since January 2016 because it has not paid subsidy on petrol, the non availability of foreign exchange to sustain the importation of products has caused the longest period of scarcity since the regime of the late military dictator, General Sani Abacha.
Nigeria is struggling to cope with a plunge in crude oil prices which accounted for about two-thirds of government revenue in 2014. The uncertainty has forced the apex bank to impose capital controls such as restricting the amounts of dollars it sells to manufacturers..

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