The Central Bank of Nigeria (CBN) has revealed that the country’s federally-collected revenue fell by 11.3 per cent to N845.14 billion in February. The figure contrasts with the N952.49 billion recorded the previous month.
The CBN economic report for February posted on its website on Wednesday, showed that at N845.14 billion, the estimated federally-collected revenue (gross) in February also fell below the monthly budget estimate of N1.246 trillion by 32.2 per cent.
This poor performance relative to the estimated monthly budget was attributed to shortfalls in both oil and non-oil revenues.
According to the report, oil receipts stood at N496.63 billion or 58.8 per cent of total revenue and was less than the monthly budget estimate of N798.83 billion and the preceding month’s receipt of N556.82 billion, by 37.8 per cent and 10.8 per cent, respectively.
The shortfall in oil revenue, relative to the monthly budget estimate, was also attributed to shut-ins and shut-downs at some Nigerian National Petroleum Corporation (NNPC) terminals due to pipeline leakages and maintenance activities.
On the other hand, non-oil receipt stood at N348.52 billion or 41.2 per cent of total revenue and was also below the monthly budget estimate of N447.24 billion and the receipt of N395.67 billion in the preceding month by 22.1 per cent and 11.9 per cent, respectively.
The drop in revenue collection, relative to the monthly budget estimate, was due to the decline in revenue from corporate tax, VAT and the federal government independent revenue, the report stated.
The report read, “Of the net sum of N682.67 billion retained in the Federation Account, the sums of N97.43 billion, N35.00 billion, and N42.22 billion were transferred to the VAT Pool Account, Federal Government Independent revenue, and ‘Others’, respectively; leaving a net balance of N508.03 billion for distribution to the three tiers of government and 13 per cent derivation fund.
“Of this amount, the federal government received N243.36 billion, while the state and local governments received N123.43 billion and N95.16 billion, respectively. The balance of N46.07 billion was shared among the oil-producing states as 13 per cent derivation fund.
“From the N97.43 billion transferred to the VAT Pool Account, the federal government received N14.61 billion, while the states and local governments received N48.71 billion and N34.10 billion, respectively,” it stated”.
The report further stated that the external sector performance declined in the month under review, due to the 11.7 per cent decrease in the international price of crude oil to $58.45 per barrel, at the end-February 2020.
This was linked, mainly, to the continuous spread of COVID-19.
Aggregate foreign exchange inflow into the economy amounted to $16.19 billion, a decline of 4.4 per cent, compared with the level in the preceding month.
The report also showed that aggregate forex outflow from the economy, at $6.84 billion, was down by 1.5 per cent, compared with the level in the preceding month.
This figure was, however, 26 per cent higher than the level in the corresponding period of 2019 and the development was attributed mainly to the 1.7 per cent decline in the outflow through the bank.
The report added; “Accordingly, foreign exchange flows through the economy, resulted in a net inflow of $9.35 billion in the review period, compared with $9.99 billion and $4.58 billion at end-January 2020 and end-February 2019, respectively.
“At $4.82 billion, aggregate foreign exchange inflow into the CBN fell by 8.6 per cent and 7.8 per cent, relative to the levels in the preceding month and the corresponding period of 2019, respectively. The decline in aggregate foreign exchange inflow into the bank, relative to the preceding month’s level, was attributed, largely, to the fall in both oil and non-oil receipts.
“Aggregate outflow of foreign exchange from CBN fell by 1.7 per cent to $6.56 billion, compared with the level at end-January 2020. It was, however, 22.4 per cent higher than the level in the corresponding period of 2019.
“The decrease, relative to the preceding month’s level was attributed, mainly, to 32.6 per cent fall in other official payments/public/direct payments. Overall, foreign exchange flows, through the bank at end-February 2020, resulted in a higher net outflow of $1.74 billion, compared with a net outflow of $1.40 billion and $0.13 billion in the preceding month and the corresponding period of 2019, respectively,”