1 May 2014

Nigeria: Revenue Fell 10.3 Percent Below Budget Estimates in Feb - CBN Report

Latest data by the Central Bank of Nigeria (CBN) in its monthly Economic Report has estimated that federally-collected revenue (gross) in February stood at N847.81 billion.

Although the amount exceeded the receipts in the preceding month by 25.5 per cent, it was lower than the monthly budget estimate by 10.3 per cent.

The decline, relative to the 2013 monthly budget estimate, was blamed, largely, on "the shortfall in non-oil revenue during the review period, (while) relative to the preceding month, growth in estimated federally-collected revenue (gross) was attributed to increases in both oil and non-oil revenue".

According to the report, gross oil receipts stood at N630.14 billion, representing 74.3 per cent of total revenue, while gross non-oil receipts at N217.68 billion was 25.7 per cent of the total.

It "exceeded receipts in the preceding month by 32.8 per cent, but was lower than the monthly budget estimate by 2.2 per cent. "The fall in oil receipts relative to the monthly budget estimate was attributed to the shortfall in receipts from crude oil and gas export due to pipe line vandalism resulting in a drop in production. "Relative to the preceding month, the rise in oil receipts was attributed to increase in all its components," the CBN added.

The report said non-oil receipts exceeded the receipts in the preceding month by 8.4 per cent, lower than the monthly budget estimate by 27.6 per cent.

On a month-on-month basis, the rise in non-oil receipts (gross) was linked to the growth in receipts from all its components, except customs and excise duties and education tax.

"However, the decline in non-oil revenue relative to the monthly budget estimate reflected, largely, the low receipts from all its components except customs special levy and Value Added Tax," the report added.

Meanwhile, total estimated expenditure for the period at N342.25 billion was above the level in the preceding period by 0.7 per cent. It was nonetheless lower than the monthly budget estimate by 29.1 per cent.

A breakdown of Federal Government's total expenditure showed that recurrent expenditure stood at 73.8 per cent, the capital expenditure accounted for the balance of 19.5, while the transfer components was 6.7 per cent. Non-debt obligations accounted for 76.6 per cent of the total recurrent expenditure, while debt service payments accounted for the balance of 23.4 per cent.

Consequently, the report added, "the fiscal operations aof the Federal Government resulted in an estimated deficit of N57.79 billion, compared with the 2013 monthly budget deficit estimate of N73.92 billion for 2014".

Also, the report put bank lending for the period at N12.343 trillion, an increase of 2.2 per cent over the level in the preceding month, helped by the 2.6 per cent growth in banks' credit to the private sector. The report also put total assets and liabilities of the Nigerian banking industry at N24.292 trillion, "showing a decline of 0.5 per cent below the level at the end of the preceding month".

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