Govt Collected N5tn Revenue in One Year – FRC

• Govt Collected N5tn Revenue in One Year – FRC

Nigeria’s federally collected revenues for 2016 amounted to N5.04tn, the Fiscal Responsibility Commission has said.

The FRC, which stated this in its analysis of the 2016 budget performance, also indicated that a total of N242.72bn was paid into the Excess Crude Account within the year, while a total of N85.17bn was withdrawn from the account and shared between the federal and state governments.

In a table on the federally collected revenues, the FRC indicated that the N5.04tn collected in 2016 was less than the N7.95tn, which the government had projected for the year.

Thus, the revenue collected was N2.91tn or 36.6 per cent less than the amount the government had projected to make for the year. The amount was also N1.06tn less than the N6.11tn, which the government made in 2015.

On sources of the revenues, the report stated, “Total actual revenue collected amounted to N2.69tn, representing 72.14 per cent of the budget and 71.81 per cent of the previous year’s actual collection. The 2016 actual figures showed a shortfall of N1.06tn or 28.19 per cent over 2015.

“The performance of the components of oil revenue were crude sales, N1.45tn or 81.72 per cent; gas sales, N43.61bn or 5.16 per cent; royalties, N344.8bn or 66.01 per cent; Petroleum Profit Tax, N857.54bn or 142.31 per cent; and other oil revenues, N5.95bn or 157.41 per cent. Compared with 2015, all oil revenue components showed relative decline.

“The decline in oil revenue could be the result of challenges experienced in the oil sector in 2016. These challenges included oil theft, instability in international oil price and production shutdown arising from vandalism of oil facilities in the Niger Delta region.”

It added, “The total non-oil revenue actually collected in 2016 amounted to N2.35tn or 55.71 per cent of the year’s budget and 99.7 per cent of the previous year’s actual collection.

“The policies and measures deployed to improve non-oil revenue performance to drive the much desired revenue diversification were negatively impacted by a general decline in global economic activities, slump in public and private expenditure as well as security challenges, among others.”