Nigeria’s total federally-collected revenue fell by 32.2 per cent (N400.9 billion) to N845.14 billion in February 2020 against the monthly budget estimate of N1.25 trillion, the Central Bank of Nigeria (CBN) has said.
The apex bank, which disclosed this in its February 2020 Economic Report posted on its website yesterday, also stated that federally- collected revenue in February was also 11.3 per cent below the receipts of N952.49 billion in the preceding month.
It attributed the decline to shortfalls in both oil and non-oil revenue during the period.
Specifically, the CBN stated: “Oil receipts, at N496.63 billion or 58.8 per cent of total revenue, was below the monthly budget estimate of N798.83 billion and the preceding month’s receipt of N556.82 billion, by 37.8 per cent and 10.8 per cent, respectively.
The decrease in oil revenue, relative to the monthly budget estimate was attributed to shut-ins and shut-downs at some NNPC terminals, due to pipeline leakages and maintenance activities.
“At N348.52 billion or 41.2 per cent of total revenue, non-oil receipt was below the monthly budget estimate of N447.24 billion and the receipt of N395.67 billion in the preceding month by 22.1 per cent and 11.9 per cent, respectively.
The drop in collection, relative to the monthly budget estimate was due to the decline in revenue from Corporate Tax, VAT and the Federal Government Independent Revenue.”
It disclosed that of the net sum of N682.67 billion retained in the Federation Account for the period, the sums of N97.43 billion, N35 billion, and N42.22 billion were transferred to the VAT Pool Account, Federal Government Independent Revenue, and “Others”, respectively; leaving a net balance of N508.03 billion for distribution to the three tiers of government and 13 per cent Derivation Fund.
“Of this amount, the Federal Government received N243.36 billion, while the state and local governments received N123.43 billion and N95.16 billion, respectively.
The balance of N46.07 billion was shared among the oil producing states as 13 per cent Derivation Fund,” the CBN said.
In addition, it revealed that from the N97.43 billion transferred to the VAT Pool Account, the Federal Government received N14.61 billion, while the state and local governments received N48.71 billion and N34.10 billion, respectively.
The regulator further stated that: “Overall, the total allocation to the three tiers of government in February 2020 amounted to N607.16 billion. This was below the monthly budget estimate of N1,090.67 billion by 44.3 per cent.
It was also below the allocation of N673.21 billion in January 2020 by 9.8 per cent.” According to the CBN, the estimated total expenditure of the Federal Government stood at N641.08 billion in February.
The bank said while the figure was below the monthly budget estimate of N865.31 billion by 25.9 per cent, it was above the N587.05 billion recorded in the preceding month by 9.2 per cent.
New Telegraph’s analysis of CBN 2019 economic reports shows that federally collected revenue was consistently below budget estimates last year.
Meanwhile, the CBN has said that it sold a total of $4.90 billion to authorised dealers in February 2020, compared with the $4.07 billion in January 2020, adding that this was an increase of 20.4 per cent and 46.3 per cent relative to the levels in the preceding month and the end of the corresponding period of 2019, respectively.
It also disclosed that interbank sales in February fell by 17.2 per cent to $0.10 billion, compared with the preceding month’s level of $0.12 billion.
Sales to Bureaux De Change (BDCs), according to the bank, also went south, falling by 9.3 per cent to $1.24 billion, compared with the preceding month’s level of $1.37 billion.
Similarly, swaps transactions declined by 21.9 per cent to $0.48 billion, relative to the preceding month’s level of $0.61 billion.