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Economy

FG Records N3.1bn Revenue Shortfall in 2015

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FIRS
  • FG Records N3.1bn Revenue Shortfall in 2015

The Fiscal Responsibility Commission says the Federal Government recorded a revenue shortfall of N3.1bn at 33.34 per cent of its gross federally-collected revenue in 2015.

This was contained in the 2015 Annual Report and Audited Accounts of the commission released on Tuesday in Abuja.

It said that N9bn was anticipated as federally-collected revenue in 2015, but only N6.1bn was actually collected.

He said, “In relation to the previous year, the 2015 budget was 90.04 per cent of the N10bn budgeted for 2014.

“The 2015 actual revenue performance of N6.1bn was below the performance of N9.3bn or 93.0 per cent, achieved in 2014.”

It, however, said that the oil slump and shortfall in oil production, due to oil theft and pipelines vandalism, accounted for the sharp revenue decline.

Giving a detailed analysis, the report said that for oil revenue, the performance averaged 69.11 per cent in 2015 against 93.98 per cent in 2014, a shortfall of 44.26 per cent.

The total oil revenue (gross) received for 2015 was N3.75bn, while that of 2014 was N6.73bn.

The non-oil revenue received for 2015 was also much lower than what was received in 2014.

Detailed analysis of non-oil revenue (gross) revealed that all its components performed below the budget and equally lower than 2014 receipts.

It said that the Value Added Tax receipts was N778.7bn in 2015 against N794bn in 2014, while Company Income Tax receipts was N1bn in 2015 against N1.2bn in 2014.

Customs and excise duties generated N514bn in 2015 against N566bn in 2014.

The report said that the low non-oil revenue performance suggested the ineffectiveness of the measures geared toward revenue increase as a result of the revenue diversification being pursued.

“These measures have to be re-invigorated in subsequent years to block revenue leakages and evasion of taxes and customs duties,’’ it said.

The report said that oil and non-oil contribution of net distributable funds were 52.95 per cent and 47.05 per cent, respectively, adding that there was no contribution from solid minerals as budgeted.

For the Excess Crude Account (ECA) created to serve as a stabilisation and savings fund, to augment budgets, the report showed that only N48.9bn was transferred into it in 2015 compared with N796.7bn in 2014.

It also said that N458.1bn was withdrawn from the ECA in 2015, while N927.3bn was withdrawn from it in 2014.

“Other than the distribution of N98.1bn shared among the three tiers of government, the withdrawal of N359.3bn for the payment of petroleum products subsidy, was in violation of Section 35 of Fiscal Responsibility Act (FRA) 2007.

“Such payment was clearly outside the scope of the ECA.’’

Giving an analysis of returns from Ministries, Departments and Agencies (MDAs) the report showed that N4.9bn independent revenue was remitted to the treasury by 25 MDAs in 2015 against N7.7bn remitted by 20 MDAs in 2014.

It said that only 15 MDAs submitted their Internally Generated Revenue returns for the four quarters of 2015, while eight made submissions for three quarters, and over half did not make any submissions at all.

The commission blamed non-compliance with the FRA as a major setback in collecting what was due to the treasury from the MDAs.

The FRA 2007 was enacted to promote prudent management of the nation’s resources, ensure long-term macro-economic stability and transparency in fiscal operations of the nation’s economy.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

NNPC Supplies 1.44 Billion Litres of Petrol in January 2021

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The Nigerian National Petroleum Corporation (NNPC) supplied a total of 1.44 billion litres of Premium Motor Spirit popularly known as petrol in January 2021.

The corporation disclosed in its latest Monthly Financial and Operations Report (MFOR) for the month of January.

NNPC said the 1.44 billion litres translate to 46.30 million litres per day.

Also, a total of 223.55Billion Cubic Feet (BCF) of natural gas was produced in the month of January 2021, translating to an average daily production of 7,220.22 Million Standard Cubic Feet per Day (mmscfd).

The 223.55BCF gas production figure also represents a 4.79% increase over output in December 2020.

Also, the daily average natural gas supply to gas power plants increased by 2.38 percent to 836mmscfd, equivalent to power generation of 3,415MW.

For the period of January 2020 to January 2021, a total of 2,973.01BCF of gas was produced representing an average daily production of 7,585.78 mmscfd during the period.

Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20%, 19.97 percent and 14.83 percent respectively to the total national gas production.

Out of the total gas output in January 2021, a total of 149.24BCF of gas was commercialized consisting of 44.29BCF and 104.95BCF for the domestic and export markets respectively.

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Economy

NNPC Says Pipeline Vandalism Decrease by 37.21 Percent in January 2021

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The Nigerian National Petroleum Corporation (NNPC) said vandalisation of pipelines across the country reduced by 37.21 percent in the month of January 2021.

This was disclosed in the January 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR).

The report noted that 27 pipeline points were vandalised in January 2021, down from 43 points posted in December 2020.

It also stated that the Mosimi Area accounted for 74 percent of the total vandalised points in Janauray while Kaduna Area and Port Harcourt accounted for the remaining 22 percent and 4 percent respectively.

NNPC said it will continue to engage local communities and other stakeholders to reduce and eventually eliminate the pipeline vandalism menace.

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Economy

Nigeria’s Food Inflation Hits 22.95 Percent in March 2021

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Food inflation in Africa’s largest economy Nigeria rose by 22.95 percent in March 2021, the latest report from the National Bureau of Statistics (NBS) has shown.

Food Index increased at a faster pace when compared to 21.70 percent filed in February 2021.

Increases were recorded in Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetable, Fish, Oils and fats and fruits.

On a monthly basis, the food sub-index grew by 1.90 percent in March 2021. An increase of 0.01 percent points from 1.89 percent recorded in February 2021.

Analysing a more stable inflation trend, the twelve-month ended March 2021, showed the food index averaged 17.93 percent in the last twelve months, representing an increase of 0.68 percent when compared to 17.25 percent recorded in February 2021.

Insecurities amid wide foreign exchange rates and several other bottlenecks that impeded free inflow of imported goods were responsible for the surged in prices of goods and services in March, according to the report.

The Central Bank of Nigeria-led monetary policy committee had attributed the increase in prices to scarcity created by the intermittent clash between herdsmen and farmers across the nation.

However, other factors like unclear economic policies, increased in electricity tariffs, duties, subsidy removal and weak fiscal buffer to moderate the negative effect of COVID-19 on the economy continue to weigh and drag on new investment and expansion of local production despite the Federal Government aggressive call for improvement in domestic production.

Nigeria’s headline inflation rose by 18.17 percent year-on-year in the month under review.

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