Nigeria, Oct 20, 2016 – There has been a sharp decrease in revenue that accrued to the Federation Account in the first quarter, cumulating in a total loss of N241.64 billion, the Central Bank of Nigeria(CBN) has said.
The figure is based on second quarter statistics released by Office of the Accountant General of the Federation.
According to the statistics, Gross federally-collected revenue amounted to ₦991.05 billion during the second quarter of 2016, representing decreases of ₦241.64 billion or 19.60 per cent and ₦318.57 billion or 24.33 per cent, below the levels in the preceding quarter and corresponding quarter of 2015, respectively.
It added that revenue collections met just 52.09 per cent of budgetary target of ₦1,902.65. The statistics also made it very clear that oil still remains Nigeria’s highest income earner.
“At ₦518.20 billion, gross oil revenue declined by ₦206.44 billion or 28.49 per cent and ₦301.30 billion or 36.77 per cent, in comparison with its respective levels in Q1:2016 and Q2:2015.
“Oil revenue accounted for 52.29 per cent of gross revenue during the review quarter, while the balance of 47.71 per cent was from non-oil sources”, it noted, adding that gross oil revenue met 58.64 per cent of budgetary target of ₦883.71 billion.
Tax performance of the Tunde Fowler led Federal Inland Revenue Service was quite impressive.
“Tax revenue for the review period stood at ₦593.18 billion, representing 50.72 per cent budgetary expectations, while non-tax revenue at ₦397.87 billion, reflected 54.27 per cent budget performance”, it noted.
Besides, first line charges deducted from gross federally-collected revenue amounted to ₦138.56 billion, which met 38.84 per cent of the budgetary expectations. The total sum of ₦878.90 billion was distributed to the three tiers of government in Q2:2016.
“This comprised ₦665.67 billion from the Federation Account; ₦186.38 billion from the VAT Pool Account; ₦7.86 billion from Exchange Gain; and ₦18.99 as NNPC Refund to Federal Government . The Federal Government total expenditure in Q2:2016, stood at ₦1,325.53 billion”, it noted.
Of this amount, recurrent expenditure stood at ₦880.15 billion; while capital expenditure and transfers amounted to ₦332.38 billion and ₦113.01 billion, respectively.
Total expenditure exceeded its budgetary target by 1.72 per cent but overall, the Federal Government recorded a deficit of ₦651.12 billion