The Central Bank of Nigeria, CBN has revealed that Nigeria recorded a revenue loss of over N400bn in February 2020 due to shortfall in both oil and non-oil revenues.
For February 2020, the federal government of Nigeria’s monthly budget estimate stood at N1.246 trillion but was able to realize only N845.14 billion leading to a shortage of over N4.860b. This figure fell by 11.3 percent compared with the N952.49 billion recorded the previous month.
This figure was contained in the CBN’s monthly economic report for February.
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A further breakdown of the report revealed that oil receipts, at N496.63 billion or 58.8 percent of total revenue was below the monthly budget estimate of N798.83 billion and the previous month’s receipt of N556.82 billion, by 37.8 percent and 10.8 percent, respectively.
The decline 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, at N348.52 billion or 41.2 percent of total revenue, the non-oil receipt 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 percent and 11.9 percent, respectively.
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The drop in the collection, relative to the monthly budget estimate, was due to the decline in revenue from corporate tax, Value Added Tax, VAT, and the federal government independent revenue, the report stated.
“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 percent 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 percent 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 added that the external sector performance declined in the review month, due to the 11.7 percent decrease in the international price of crude oil to $58.45 per barrel, at the end-February 2020.
This was attributed, mainly, to the continuous spread of COVID-19.
Consequently, aggregate foreign exchange inflow into the economy amounted to $16.19 billion, indicating a decrease of 4.4 percent, compared with the level in the preceding month.
The report indicated that aggregate forex outflow from the economy, at $6.84 billion, fell by 1.5 percent, compared with the level in the preceding month.
It was, however, 26 percent higher than the level in the corresponding period of 2019 and the development was attributed mainly to the 1.7 percent decline in the outflow through the bank.
“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 percent and 7.8 percent, 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 percent to $6.56 billion, compared with the level at end-January 2020. It was, however, 22.4 percent 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 percent 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,” the report added.
