Non-oil Revenue Increases by 28.7% to N322.93 billion

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The federal government’s non-oil revenue improved by 28.7 per cent to N322.93 billion in April, larger than the N251.01 billion reported the previous month.

But at N322.93 billion or 40.6 per cent of total revenue, the non-oil revenue was below the provisional monthly budget estimate of N466.91 billion by 30.8 per cent.

The Central Bank of Nigeria (CBN) disclosed this in its monthly economic report for April 2019, posted on its website.

But it explained that the lower collection relative to the provisional monthly budget estimate was due to the shortfalls in corporate tax, VAT, Federal Government of Nigeria Independent Revenue and Education Tax.

According to the report, at N795.31 billion, the estimated federally-collected revenue (gross) in April 2019, fell below the provisional monthly budget estimate of N1.107 trillion by 28.2 per cent.

However, it exceeded the receipt of N767.90 billion in the preceding month by 3.6 per cent. The decrease, relative to the provisional monthly budget estimate, was attributed to a shortfall in both oil and non-oil revenue.

Also, oil receipts, at N472.38 billion or 59.4 per cent of total revenue, was below both the provisional monthly budget estimate and the preceding month’s receipt of N516.88 by 26.2 per cent and 8.6 per cent, respectively.

The fall in oil revenue relative to the provisional monthly budget estimate was attributed to the shut-ins and short-downs at some NNPC terminals due to technical issues, leakages and maintenance.

“Of the total N616.21 billion retained revenue in the Federation Account, the sums of N88.49 billion, N67.82 billion and N24.72 billion were transferred to the VAT Pool Account, the federal government independent revenue and ‘Others’ respectively, leaving a balance of N435.18 billion for distribution to the three tiers of government,” the report said.

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Of this amount, the federal government received N208.39 billion, while the state and local governments got N105.70 billion and N81.49 billion, respectively.

The balance of N39.59 billion was shared among the oil-producing states as 13 per cent Derivation Fund.

Similarly, from the N88.49 billion transferred to the VAT Pool Account, the federal government received N13.27 billion, while the state and local governments received N44.25 billion and N30.97 billion, respectively.

“The external sector performance remained stable in the review month. The average price of crude oil rose from $68.11 per barrel in March 2019 to US$73.08 per barrel in April 2019 due to OPEC-led supply cuts, geopolitical tensions in Libya and Venezuela, and the US sanctions on Iran.

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“Notwithstanding, aggregate foreign exchange inflow into the CBN, at $5.25 billion, showed a decline of 32.4 per cent below the level in the preceding period of 2019 but contrasted with the growth of 23.8 per cent at the end of the corresponding period of 2018. The fall in aggregate foreign exchange inflow into the CBN, relative to the preceding month’s level, was attributed, largely, to the decrease in non- oil receipts.

“Aggregate outflow of foreign exchange from the Bank fell by 6.7 per cent below the level at the end of the preceding month to $4.90 billion in April 2019. It, however, indicated a 42.5 per cent increase over the level at the end of the corresponding period of 2018. The development, relative to end-April 2019, reflected, mainly, the 13.2 per cent decline in ‘Interbank Utilisation,” the report stated.

Furthermore, the overall, foreign exchange flows through the Bank in the month of April 2019, resulted in a net inflow of $0.35 billion, compared with $2.51 billion and $0.80 billion in the preceding month and the corresponding period of 2018, respectively.

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According to the report, at N31.696 trillion, aggregate credit to the domestic economy, on month-on-month basis, grew by 3.9 per cent at the end of the review month, compared with the increase of 6.5 per cent and 0.7 per cent at the end of the preceding month and the corresponding period of 2018, respectively.

The development reflected, mainly, the 11.4 per cent rise in net claims on the federal government. Over the level at the end- December 2018, net domestic credit grew by 15 per cent at the end of the review period, compared with the growth of 10.7 per cent and 5.3 per cent at the end of the preceding month and the corresponding period of 2018, respectively. The development was due to the increase of 59.1 per cent and 5.5 per cent in net claims on the federal government and claims on the private sector, respectively.

“Net claims on the federal government, on a month-on-month basis, rose by 21.8 per cent to N7,741.3 billion at end-March 2019, compared with the increase of 11.4 per cent and 7.3 per cent at the end of February 2019 and March 2018, respectively.

“The development was due to the increase of 74.0 per cent in the banking systems holding of government securities in the review month. Relative to the level at the end- December 2018, net claims on the federal government grew by 59.1 per cent at the end of the review period, compared with the increase of 30.6 per cent and 35.5 per cent at end of February 2019 and March 2018, respectively,” it added.

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