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CBN: Federally-collected Revenue Rises by 23% to N932bn

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CBN: Federally-collected Revenue Rises by 23% to N932bn

CBN: Federally-collected Revenue Rises by 23% to N932bn
September 09
08:41 2019

Nigeria’s federally collected revenue (gross) stood at N931.93 billion in July, representing a 22.6 per cent increase compared with the N760.08 billion recorded in June, the Central Bank of Nigeria (CBN) has revealed.

However, the amount realised in the month under review, was lower than the provisional monthly budget estimate of N1.107 trillion by 15.8 per cent.

The decline in federally-collected revenue relative to the provisional monthly budget estimate, was attributed to a shortfall in both oil and non-oil revenue in the review period.

Data from the central bank’s economic report for July, posted on its website, showed that gross oil receipts, at N387.74 billion or 41.6 per cent of the total revenue, was below the monthly budget of N640.21 billion by 39.4 per cent.

 It, however, exceeded the receipt of N336.63 billion in the preceding month by 15.2 per cent. The fall in oil revenue relative to the provisional monthly budget estimate was attributed to shut-ins and short-downs at some Nigerian National Petroleum Corporation (NNPC) terminals, due to pipeline leakages and maintenance activities.

But non-oil revenue, at N544.19 billion or 58.4 per cent of total revenue, was above both the provisional monthly budget estimate of N466.91 billion and the preceding month’s receipt of N423.45 billion by 16.6 per cent and 28.5 per cent, respectively.

The increase in collection relative to the provisional monthly budget was due to the rise in Customs Special Levies, Corporate Tax, Customs and Excise Duties, Education Tax, and FGN Independent Revenue.

But aggregate credit to the domestic economy (net), on month-on-month basis, grew by 0.5 per cent to N32.3 trillion at end-June 2019, in contrast with the decline of 2.2 per cent at the end of the preceding month.

It indicated a growth of 1.3 per cent relative to the level at the end of the corresponding period of 2018.

The development was attributed to increase of 3.7 per cent in net claims on the federal government. 

Relative to the level at the end of December 2018, aggregate credit to the domestic economy (net), rose by 17.3 per cent, compared with the growth of 16.7 per cent at end of May 2019.

The growth in aggregate credit to the domestic economy, over the level at end-December 2018, according to the report, contrasted with the decline of 3.3 per cent at the end of the corresponding period of 2018. 

The report stated that net claims on the federal government, on month-on-month basis, grew by 3.7 per cent to N7,581.5 billion at end-June 2019, in contrast to the decline of 8.7 per cent at end-May 2019.

According to the report, the growth in net claims of the federal government reflected the increase in holdings of government securities by the banking system.

Relative to the level at the end of the corresponding period of 2018, net claims on the federal government grew by 8.5 per cent. Over the level at end-December 2018, net claims on the federal government rose by 55.8 per cent, compared with the growth of 50.3 per cent at the end of the preceding month.

“It, however, contrasted with the decline of 22.9 per cent recorded at the end of the corresponding period of 2018. 

“Relative to the level at end-May 2019, banking system credit to the private sector declined by 0.4 per cent at end-June 2019, compared with the decline of 0.1 per cent at end-May 2019.

“This, however, showed a growth of 0.3 per cent when compared with the level at the end of the corresponding period of 2018,” it added.

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