Federal Government revenue declines to N1.4trn in 3 months

The Federal Government revenue declined to N1.4 trillion during the second quarter of 2015, representing 39.2 percent compared with the provisional quarterly budget estimate of N2.4 trillion.

The revenue also declined by 27.7 percent when compared with the receipts of N2,055 trillion in the preceding quarter according to the Central Bank of Nigeria (CBN).

The development relative to the budget estimate was attributed to the decline in oil and non-oil revenue during the review period.

The CBN’s economic report for second quarter 2015 show that at N839.02 billion, gross oil receipts, which constituted 56.5 per cent of the total, fell by 38.2 and 30.7 per cent below the provisional quarterly budget estimate of N1,357.80 billion and receipts of N1,210.77 billion in the preceding quarter, respectively.

The decline in oil revenue relative to the budget estimate was attributed, mainly, to the fall in receipts from PPT and Royalties, owing to the persistent fall in crude oil prices in the international market, during the review quarter.

Non-oil receipts (gross), at N646.72 billion (43.5 per cent of the total), was below the provisional budget estimate and receipts in the preceding quarter by 40.5 and 23.4 per cent, respectively. The decline in non-oil revenue relative to the provisional budget estimate was due, largely, to the fall in receipts from most of its components during the review quarter.

Of the gross, federally-collected revenue during the review quarter, the sum of N898.58 billion (net deductions) was transferred to the Federation Account for distribution among the three tiers of government and the 13.0 percent Derivation Fund.

The sum of N98.83 billion, N195.05 billion and N57.75 billion were transferred to the Federal Government Independent Revenue, VAT pool account and others, respectively. The Federal Government received N430.41 billion, while the state and local governments received N218.31 billion and N168.31billion, respectively. The balance of N81.56 billion was allocated to the 13.0% Derivation Fund for distribution among the oil-producing states. Also, the Federal Government received N29.26 billion from the VAT Pool Account, while the state and local governments received N97.53 billion and N68.27 billion, respectively.

Thus, the total statutory and VAT revenue allocation to the three tiers of government in the second quarter of 2015 amounted to N1,211.67 billion, compared with the provisional quarterly budget estimate of N1,994.77 billion and N1,616.44 billion in the preceding quarter.