The net profit of the Nigerian oil and gas industry dropped by 27.08 percent year-on-year in the second quarter after President Bola Tinubu removed the petrol subsidy during the same period.subsidiseWhile the federal government, under ex-President Muhammadu Buhari, budgeted for the subsidy to fund petrol consumption in the first six months of 2023, Tinubu immediately ended it after he was sworn in.
This indicates a whopping increase of N71.84 billion in expenses, relative to the N227.13 billion the industry expended on the cost of sales in the same period in 2022. The oil company managed to grow its net profit after keeping its costs to a single-digit growth compared with other oil companies that reported a double-digit increase.A meagre 3.75 percent rise was seen in MRS’ cost of sales within the period in review, as it took N23.76 billion to keep its products available in the market — in contrast to the N22.90 billion disbursed in Q2 2022.
Seplat’s bottom line settled at N15.60 billion in the quarter ending June 2023, down from the N27.15 billion reported in Q2 the previous year. Note that in the same period this year, Eterna increased its revenue by 25.54 percent or N7.76 billion to N38.15 billion in turnover, up from N30.39 billion posted in Q2 of the previous year.To further buttress the struggle of the oil and gas industry, the sector failed to increase its contribution to the gross domestic product in the quarter under review.obtained from the National Bureau of Statistics , the sector contributed N2.94 trillion to the GDP. This is below the N3.