The provisional gross federally-collected revenue in the first half of 2014 stood at N5.1 trillion or 12.1 percent of GDP, according to the Central Bank of Nigeria (CBN).
This was below the proportionate budget estimate by 6.0 percent, but above the level in the corresponding period of 2013 by 6.3 percent. The decrease in federally-collected revenue relative to the proportionate budget estimate was as a result of the decline in non-oil revenue. Oil revenue constituted 70.5 percent of total revenue, while non-oil revenue accounted for the balance.
Meanwhile, the statutory revenue to the three tiers of government and the 13% Derivation Fund from the Federation Account (including SURE-P3 and NNPC Refunds) and VAT Pool Account was N3.8 trillion in the first half of 2014. The amount was below both the proportionate budget estimate and the level in the first half of 2013 by 10.4 and 15.3 percent, respectively. A breakdown showed that the Federation Account amounted to N3.12 trillion (83.1%); NNPC Refunds, N30.47 billion (0.8%); SURE-P, N213.29 billion (5.7%) and VAT Pool Account, N391.63 billion (10.4%).
Distribution from the Federation Account to the three tiers of government in the first half of 2014 was as follows: Federal Government, N1.5 trillion; while states and local governments received N747.23 billion and N576.08 billion, respectively. The balance of N322.36 billion was shared as the 13% Derivation Fund among the oil producing states.
In addition, the Federal Government received N97.75 billion, while states and local governments as well as the 13% Derivation Fund got N49.58 billion, N38.23 billion and N27.73 billion, respectively, from the SURE-P. Furthermore, states and local governments received N14.97 billion and N11.54 billion, while the 13% Derivation Fund got N3.96 billion from NNPC Refunds.
The CBN’s 2014 half year report released on Monday show that at N3.6 trillion or 8.5 percent of GDP, gross oil revenue grew by 0.6 percent above the proportionate budget estimate, but was 1.2 percent below the level in the first half of 2013. The improvement in oil revenue relative to the budget estimate was attributed largely to the sustained high price of crude oil in international market, despite the incessant pipeline vandalism and oil theft in the Niger Delta region, which constrained crude oil/gas production and exports during the period.