FG Records N398bn Revenue Deficit in Q1

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  • FG Records N398bn Revenue Deficit in Q1

The gross federally-collected revenue of N2.309tn recorded in the first quarter of 2019 fell short of the proportionate quarterly budget estimate of N3.321tn by 30.5 per cent.

It fell below the receipts in the preceding quarter by 4.2 per cent.

The decline, relative to the proportionate quarterly budget estimate, was attributed to the shortfall in receipts from both oil and non-oil revenue components during the review period, according to the Central Bank of Nigeria.

The CBN stated in its Federation Account Operations that “federally-collected revenue, at N2.309tn, in the first quarter of 2019, was 30.5 per cent and 4.2 per cent lower than the proportionate quarterly budget estimate and the receipts in the preceding quarter, respectively.

“The development relative to the budget estimate was due to the shortfall in receipts from both oil and non-oil revenue components in the review quarter.

“The Federal Government estimated retained revenue and total expenditure were N798.82bn and N1.197tn, respectively, resulting in an estimated deficit of N398.22bn in the first quarter of 2019.”

Gross oil receipt, at N1.413tn or 61.2 per cent of the total revenue, was below both the proportionate quarterly budget estimate and the receipts in the preceding quarter by 26.4 per cent and 3.5 per cent, respectively.

The decline in oil revenue relative to the proportionate budget estimate was due to shortfalls in crude oil production and exports, arising from maintenance operations at the various NNPC terminals.

Non-oil revenue, at N896.04bn or 38.8 per cent of the total, fell below the proportionate quarterly budget estimate of N1.4tn by 36.0 per cent.

It fell below the level in the preceding quarter by 5.4 per cent.

The lower non-oil revenue relative to the proportionate quarterly budget estimate was due to shortfalls in a receipt from Federal Government Independent Revenue and Corporate Tax

After the statutory deductions and transfers of N435.51bn and N395.81bn respectively, a net sum of N1.478bn was retained in the Federation Account.

Of this amount, the Federal Government received N709.03bn, state and local governments received N359.63bn and N277.26bn, respectively, while the balance of N132.54bn was transferred to the 13.0 per cent Derivation Fund for distribution among the oil-producing states.

In addition, the Federal Government received N43.43bn, while the state and local governments received N144.78bn and N101.34bn, respectively, from the VAT Pool Account.

The sum of N12.14bn was shared as non-oil excess revenue from which the Federal Government received N6.40bn, while the state and Local governments received N3.24bn and N2.50bn, respectively.

After the exchange gain amounting to N2.49bn was shared, the Federal Government received N1.16bn, state governments got N0.59bn, and local governments got N0.46bn.

The balance of N0.28bn was transferred to the 13.0 per cent Derivation Fund for distribution among the oil-producing states.

The total statutory and VAT revenue allocation to the three tiers of government in the first quarter of 2019 amounted to N1.782tn, compared with the proportionate quarterly budget estimate of N2.829tn.

About the Author

Samed Olukoya
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 long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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