FG REVENUE DIPPED BY N388BN IN NOVEMBER – CBN
Federally-collected revenue fell by N388bn in November, latest statistics from the Central Bank of Nigeria have revealed. Part of the CBN’s report on ‘Monthly economic report for the month of November’, read, “At N858.92bn, the estimated federally-collected revenue (gross) in November 2019 fell below both the monthly budget estimate of N1.24tn and the preceding month’s receipt of N894.09bn by 31.1 per cent and 3.9 per cent respectively.
“The decline, relative to the monthly budget estimate, was attributed to shortfall in both oil and non-oil revenues.” It stated that oil receipt, at N489.08bn or 56.9 per cent of total revenue, was below both the monthly budget of N798.83bn and the preceding month’s receipt of N577.30bn by 38.8 per cent and 15.3 per cent, respectively. The decrease in oil revenue, relative to monthly budget estimate, was attributed to shut-ins and shut-downs at some NNPC terminals, due to pipeline leakages and maintenance activities.
At N369.84bn or 43.1 per cent of total revenue, non-oil receipt was below the monthly budget of N447.24bn by 17.3 per cent. It, however, exceeded the preceding month’s earning of N316.79bn by 16.7 per cent. The drop in collection, relative to the monthly budget, was due to the decline in revenue from Value Added Tax, education tax and Federal Government’s independent revenue.
Of the net sum of N723.31bn retained in the federation account, the sums of N100.72bn, N26.88bn, and N23.65bn were transferred to the VAT Pool Account, Federal Government’s independent revenue, and others, respectively, leaving a net balance of N572.06bn for distribution to the three tiers of government and 13 per cent derivation fund. The balance of N47.91bn was shared among the oil producing states as 13 per cent derivation fund.
From the N100.72bn transferred to the VAT Pool Account, the Federal Government received N15.11bn, while the state and local governments received N50.36bn and N35.25bn, respectively. In addition, the sum of N1.11bn was distributed in the month as exchange gain, with the federal, state and local governments receiving N0.52bn, N0.26bn and N0.20bn, respectively, while the 13 per cent derivation fund received N0.12bn.
Also, the sum of N8.70bn was received as solid minerals revenue, with the federal, state and local governments receiving N3.99bn, N2.02bn, and N1.56bn, respectively, and the sum of N1.13bn as 13 per cent derivation fund for solid mineral-producing states. Overall, the total allocation to the three tiers of government from the Federation Account and VAT Pool Account in November 2019 amounted to N682.59bn. This is below the monthly budget estimate of N1.09tn by 37.4 per cent. It, however, exceeds the preceding month’s allocation of N673.01bn by 1.4 per cent.