Business

Nigeria’s revenue drops by N1.01trn over coronavirus

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The Federal Government has suffered a revenue shortfall of N1.01 trillion in the first quarter of this year over the negative impact of the Coronavirus pandemic.

Out of the prorated revenue projection of N1.96tn set for the first quarter of this year, the Federal Government could only earn about N950.55bn.

The revenue drop was primarily due to the dwindling revenue inflow into the federation account, according to documents reportedly obtained from the Budget Office of the Federation

Global crude oil prices have experienced unprecedented drop following the outbreak of the pandemic.

Nigeria had imposed lockdown of many states over the outbreak of the deadly virus, a development that has crippled economic activities.

The N1.01tn shortfall represents a decline of about 52 per cent, based on the analysis of the revenue projection,

The impact of the pandemic on oil revenue resulted in a shortfall of N195.37bn or 30 per cent from the prorated revenue target of N659.4bn. The actual revenue generated during the three-month period from oil was put at N464.03bn.

Similarly, the impact of the pandemic was also felt in revenue sources such as Nigeria Liquefied Natural Gas with revenue target of N31.07bn, signature bonus/renewals (N234.83bn), domestic recoveries (N59.25bn), grants and donor funding (N9.1bn), mining and mineral revenue (N470m).

The government could not generate any amount from these revenue items during the period under review.

Also, the document revealed that the revenue shortfall was also experienced in the area of Companies Income Tax where revenue dipped by N80.1bn from the target of N209.83bn to N129.72bn while Value Added Tax dropped by N30.92bn from N73.14bn to N42.23bn.

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